In Spite of the Government

Crazy Unemployment; Retirement Savings Lost; Home Values Plummeting, if you are even able to sell the house; and no end to this tumult in sight. During these times that we must endure, our lives are changing drastically and it's easy to get lost in the chaos.

Maybe some haven't had to suffer from all that has gone on, so they're wondering what all the fuss is about and think they see a lot of foolishness amongst us. These people seem to not realize that the foundation that they are standing on is slowly, but surely being whittled away under their feet. I wonder whether they are relying on some inexplicable hope or are they so insulated from the working class that they can't see what it happening all around us. Most people who are dealing in direct Economic Commerce are coming to the realization that the government is cooking the books.

One of the more relevant issues that proves this point, is that people are starting to realize that the government's reported unemployment numbers are wrong and slowly but surely they will be brought to an understanding that the government's inflation numbers have no bearing on reality. I have spoken about this before.

As for the unemployment numbers we hear reported on the news, what is reported does not include discouraged workers or those seeking full time work, but only able to find part time employment. How many of us know people who have been unemployed for a long time? How many of us know people whose Unemployment benefits have run out? How many of us know people who received severance agreements and must exhaust those before they can file for unemployment? How many of us know of people who are working 30 hours a week at reduced pay, because they have lost their full-time occupation? Do you understand that none of these people are considered to be officially unemployed?

From Shadowstats.com - "GOVERNMENT ECONOMIC REPORTS: THINGS YOU'VE SUSPECTED BUT WERE AFRAID TO ASK!" - "Series Master Introduction" (Part One in a Series of Five)
* During the Kennedy administration, unemployment was redefined with the concept of discouraged workers" so as to reduce the popularly followed unemployment rate.

* Up until the Clinton administration, a discouraged worker was one who was willing, able and ready to work but had given up looking because there were no jobs to be had. The Clinton administration dismissed to the non-reporting netherworld about five million discouraged workers who had been so categorized for more than a year. As of July 2004, the less-than-a-year discouraged workers total 504,000. Adding in the netherworld takes the unemployment rate up to about 12.5%.

Then there is the issue of inflation and its effect on our incomes. Personally, I have recognized the cost of Goods and Services have increased a lot over the last decade and especially the last 5 years. Instead of having useful statistics to help us assess where we stand economically, we have allowed government to convolute our statistical measures to the point of uselessness and they are spending billions of dollars to arrive at these garbage in/garbage out numbers.

"GOVERNMENT ECONOMIC REPORTS: THINGS YOU'VE SUSPECTED BUT WERE AFRAID TO ASK!" -"The Consumer Price Index" (Part Four in a Series of Five) - This article also addresses the issue of how the government had cooked the books when it comes to the reporting of Inflation.

As John Williams states: Inflation, as reported by the Consumer Price Index (CPI) is understated by roughly 7% per year. This is due to recent redefinitions of the series as well as to flawed methodologies, particularly adjustments to price measures for quality changes. The CPI was designed to help businesses, individuals and the government adjust their financial planning and considerations for the impact of inflation.

* In particular, changes made in CPI methodology during the Clinton Administration understated inflation significantly, and, through a cumulative effect with earlier changes that began in the late-Carter and early Reagan Administrations have reduced current social security payments by roughly half from where they would have been otherwise. That means Social Security checks today would be about double had the various changes not been made. In like manner, anyone involved in commerce, who relies on receiving payments adjusted for the CPI, has been similarly damaged. On the other side, if you are making payments based on the CPI (i.e., the federal government), you are making out like a bandit.

... The Boskin/Greenspan argument was that when steak got too expensive, the consumer would substitute hamburger for the steak, and that the inflation measure should reflect the costs tied to buying hamburger versus steak, instead of steak versus steak. Of course, replacing hamburger for steak in the calculations would reduce the inflation rate, but it represented the rate of inflation in terms of maintaining a declining standard of living. Cost of living was being replaced by the cost of survival. The old system told you how much you had to increase your income in order to keep buying steak. The new system promised you hamburger, and then dog food, perhaps, after that.

The Hound believes we are not going to be able to resolve the issues that this country faces, if we don't realistically assess where we stand with reliable numbers. The Media, with the exception of the Business Media, doesn't even question any of this or seem to have a clue. Is this because they are ignorant or in the tank? Why are we spending billions of dollars to have government agencies calculating these numbers, if we are going to allow them to be doctored to arrive at politically acceptable outcomes. Garbage in always leads to Garbage out.

I look at our area as an example. We have been sold down the river by this very process of Convoluted statistical measures. That is the reason why I always look under the surface , when it comes to Economic numbers reported by any agency associated with the government. Business, Industry, and Citizens expect these numbers to be reliable so that they can make better decisions. Our Political and Economic system is being crushed by the weight of Government Bologna.

I know that in this area that our incomes are not growing, the Milken Institute and Forbes reports show that we are in the bottom 5% when it comes to wage growth in this nation. The lack of quality jobs has permeated from the bottom to the top of our economy. If the workers don't have money, then they can't buy the products of business owners. Our community has adapted down in many ways, because of our ever shrinking economy, and accepted a lower standard of living, but how much further can we allow ourselves to fall before this community completely implodes. As the Cost of Living continues to escalate, we are going to see more and more people put into a greater bind. The tipping point is going to come sooner than most people even realize.

The way I see it, the survival of this community is at stake. This is not a time to be meek. It is a time for boldness and taking chances, because we have nothing to lose. If we stand idly by, take no action, and accept the status quo, then we will surely lose everything. What else do these cooked books show, but that we have been lied to time and time again and built our entire structure on those lies. We have been betrayed and it is time that this community becomes proactive and does what needs to be done. This community will not grow because of government help, it is going to have to grow in spite of the government. What choice do we have, when our backs are against the wall?