posted on Jan, 31 2008 @ 04:31 PM
We definitely are in a recession, and I argue that we have been for some time. The formula for Real GDP is Nominal GDP - CPI Inflation = Real GDP.
Newsflash people - inflation is NOT 2-3% per year. The government has been tinkering with CPI since the 70s to make it give lower inflation numbers
which *magically* gives us a higher Real GDP. It's fake, of course.
www.shadowstats.com is a site that highlights the changes that have been made in CPI calculation to deceive people.
I mean, let's be serious, the money supply since 1970 has gone from ~500 billion to an estimated 11 trillion presently. The reason why no one is sure
about the money supply currently is because they STOPPED publishing M3 numbers in 2006. Their reason - "because it costs too much." Give me a break!
These guys print money for a living and they say data collection costs too much! The real reason is because every time they look at how much money
they've printed, they blush in embarassment.
Money supply has increased on an 8.5% annualized basis since 1970 and people think inflation has only averaged about 3-4%???
Also, on a side note, those of you looking at government unemployment numbers as dependable, you are also fooling yourselves.
So, of course, by *government numbers*, by *definition*, we are not in recession. Well, I guess the saying is - whatever helps you sleep better at