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U.S. Now Openly Fabricating Statistics

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As I looked over another fraudulent, U.S. GDP report, I could hardly believe my eyes. In concocting its latest GDP number, the U.S. Commerce Department reported that “consumer spending” had risen by 1.6 % in the 2nd quarter. Having recently written a commentary which focused on the huge plunge in U.S. “retail sales”, I didn’t even have to review the data to know that this was a total fabrication.

For the benefit of readers, I will review that data. U.S. “consumer spending” was “flat” in April (i.e. unchanged). It (supposedly) rose 0.2% in May. In order for U.S. consumer spending to have risen by an aggregate 1.6% in the 2nd quarter (as reported by the government), June consumer spending would have had to rise approximately seven times the amount of May consumer spending.

Sadly, the Commerce Department refused to include the “consumer spending” number for June, only the fabricated number for the 2nd quarter. The reason is obvious: there is no rational number for June “consumer spending” which could create a coherent set of data.

Keep in mind that U.S. June “retail sales” plummeted downward by 0.5%,  after a much large drop of 1.1% in May. There is simply no possibility that U.S. June “retail sales” could be a large, negative number, while U.S. “consumer spending” for June could be a larger, positive number.

[Update: June "consumer spending" was just released, and May was revised lower. This means that for the 2nd quarter this is the spending "equation" which the U.S. government expects people to believe:

0.0% (April) + 0.1% (May) + 0.0% (June) = 1.6% (??)

This means that (as originally stated) 2nd quarter "consumer spending" is a deliberate lie, with no foundation in the real world.

This also means that Q2 GDP, which was based on that spending number MUST also be a complete lie.]

In other words, this is not the case of some “statistician” making a dubious “adjustment” or “estimate” in order to come up with this final total for 2nd quarter consumer spending. This is a matter of a “statistician” not liking the numbers he was looking at, so he simply erased those numbers and wrote in new ones.

While we’re talking about “fabrications” regarding consumer spending, given that “retail sales” in May collapsed by -1.1%, the reported 0.2% gain in May “consumer spending” is also not a rational number – but almost certainly another fabrication. Thus, even the initial fabrications of data weren’t good enough for the U.S. government, so it is apparently resorting to ‘re-fabricating’ numbers.

For those “optimists” (naïve zealots?) who still want to believe that the reported U.S. “consumer spending” could be true; two, separate private sector organizations both estimated that U.S. consumer spending for June was either flat or falling – hardly the enormous leap higher which would be required for the “official” U.S. number to be remotely plausible.

As I pointed out in a recent commentary (Trapped By Lies”), there are consequences for engaging in serial-lying. One of those “consequences” is that “logical disconnects” are created. By this, I mean that the lies become incompatible with each other – for instance: the way that U.S. “new home starts” cannot possibly be reconciled with “new home sales” (month after month, year after year). Consequently, the U.S. propaganda-machine never mentions “new home starts” and “new home sales” in the same article.

Another “logical disconnect” is how the aggregate, monthly employment numbers which are reported individually by states are not remotely compatible with the “national” monthly jobs-reports foisted upon us by the Bureau of Labor Statistics. These are not mere “statistical anomalies, but huge, gaping chasms between one set of numbers and another.

If U.S. new home starts exceed U.S. new home sales by a huge amount – every month – it is simply not even feasible that “inventories” could have fallen to their lowest level in decades, as the U.S. government continues to pretend. Similarly, it’s attempts to pretend that U.S. “retail sales” and U.S. “consumer spending” can be opposites of each other is also not even faintly possible.

Indeed, the reason it was necessary for the U.S. government to create a logical-disconnect between the monthly reports for “consumer spending” and the aggregate quarterly total was because if it had reported actual consumer spending for the quarter (either totally flat, or negative), then no one would have believed the GDP-lie. A “consumer economy” cannot have solid, GPD growth – when consumer spending is totally flat, or even falling. In other words, they had to create one logical-disconnect in order to hide another one.

It is time for other reputable commentators to stand-up and say what I have been saying for many months: the “Emperor” is naked!


Comments (10)Add Comment
Jeff Nielson
written by Jeff Nielson, August 03, 2010
Note: June "consumer spending" was released today: 0.0% (flat) and May was revised LOWER to 0.1%. I have updated the article to reflect this news. The "equation for Q2 consumer spending is as follows:

0.0% + 0.1% + 0.0% = 1.6%
written by breezer1, August 03, 2010
no problem with the weight of the coin jeff, its the new attitude of 'take it or leave it' that tells me that i am a troublesome customer to deal with or they are having trouble meeting demand. i don't think its unusual when buying a coin, even a bullion coin, from the canada mint thru a main branch of canada's oldest bank to expect that coin to be 'mint'. instead, i believe they are having trouble meeting demand. bodes well for holders of physical.
written by david sites, August 02, 2010
Government stats claim GDP up 2%. Government deficit spending is around 1.5 trillion on a 14 trillion GDP is just over 10%. Deducting this is an 8% drop in GDP. We don't know what the Federal Reserve is really going behind closed doors as Bernanke refuses to answer questions in Congressional hearings and to open up the Fed's Books. Logical assumption is they gave same additional green dollars to undisclosed recipients. Congress Democrats and a few Republicans refuse to force the Fed to open their books. It is obvious who Congress is working for, the Banksters and not the American people.
We are still losing over 5 million workers a year by the monthly job reports. last I checked shadowstats for Published Honest data we were around 22% unemployed in the USA. That 3% below depression figures in the 1930's. Meanwhile the Government public and hidden bailouts through the Federal Reserve go on and on. The Banksters take this 'free' money and buy treasury notes making 3% profit on the trillions in principle. Meanwhile business are shutting down, many strip malls stand 100% vacant, people are losing their jobs and their homes, and the Banksters and Wall Street Thugs are getting billions in bonuses.
Louis Armstrong's song What a Wonderfull World comes to mind. Have things changed. The middle of the road pragmatic politicians of both parties of problem solvers in the 1940's and 1950's is long gone. Now we have the Neo Natzi's of the Far Right and the Neo Communist of he far left merging into a narcisstic two headed monster called 666. The people on Mainstreet are fading as fast as the memories of Louis's Wonderfull World.
Sad that no one seems to notice, no one seems to care, too many people believing the Sad Song of the Pied Piper that all is well, Just Follow Us.
Jeff Nielson
written by Jeff Nielson, August 02, 2010
Realist, the pattern of "retroactive (downward) revisions" is becoming so obvious that there can be no excuse for any serious news bureau not to have noticed it.

For 2009, 1.3 million "birth/death" jobs were subtracted - at the beginning of 2010. Naturally, padding all the jobs reports by that absurd amount influenced markets. It's now commonplace with virtually all of these "statistics": you write-in the number you WANT for the "headlines" and media-parrots, and "revise it" to something close to legitimate many months later.

Breezer, that is truly disturbing news about the Gold Maples - thanks for sharing it. Is there any question of the "damage" resulting in an under-weight coin?
written by breezer1, August 02, 2010
jeff, something unusual happened recently. i bought a gold maple from rbc. when they called for pickup the coin was damaged and i asked them to order another. the second and third were also damaged. i asked the manager to contact the mint,( lines always busy ). days later she called and the mint told her that i would have to settle for the damaged coin. The bank manager , on her own initiative, asked if there was a supply problem. the mint said no but this has never happened to me before. i have sent back damaged coins several times over the years and never been refused a ' mint ' maple. is there a rush to physical here i wonder?
written by realist, August 02, 2010

There's also been a revision in the GDP numbers for the past several years. From about 2007 to 2009, the GDP has been revised down. This shows that this recession/depression is and was actually worse than originally reported. A logically thinking person would have reacted negatively to such bad news but it didn't affect Wall Street, the Main Stream Media and Government. I don't know how investors and businesses can make sound investment decisions when there are so many lies and distortions in our economy.
Jeff Nielson
written by Jeff Nielson, August 01, 2010
Thanks for the comments, Breezer.

Paxjds, the combination of the passive minds of the Western "couch-potato" combined with the relentless brainwashing of the largest propaganda-machine in history is an horrific combination. It reminds me of that old, 'epic' film "short": Bambi vs. Godzilla.

It requires "shock therapy" to free the brainwashed mind, and sadly, the only "shocks" which are sufficient are either a complete, personal, financial meltdown, OR some collective economic tragedy.

While the individual meltdowns are slowly awakening Americans, for those who have lost everything, it's already too late. Lose your wealth, and you also lose your "voice" in our capitalist societies.

While the "collective tragedy" is clearly here, the "veil" hasn't yet been sufficiently ripped-away to reveal the U.S. government's DELIBERATE choice to reduce its own citizens to banker-serving serfs (at least not for the majority). That will likely occur before the end of this year.
written by breezer1, July 31, 2010
great article jeff.we are close to collapse across the globe and the only savior will be faith and gold and silver.
written by david sites, July 31, 2010
The emperor is really the USSR, they just have not informed the public that they added SR to US. They have been lying for years. No doubt the government, like a lying psycopath/narcissist, has been lying so long they believe their lies as fact. Making decisions based on years of lies will lead to the disasters that we are seeing by Congress/President, Wall Street, and the Banksters. It sould be clear that they need to GO, or we will collapse as a nation. Examples of their GROSS Neglect if applied to other professions:
Engineering: The twin towers in NY city fell on their own and 9,500 people died.
Medicine: You went in for appendicitis removal, instead they performed a heart transplant and you died on the operating table.
The biggest lie to me was the bailout for the banks and insurance companies. What an absolute joke bailing out the wealthiest people in the world and expecting Mainstreet Joe to pay off the trillions of $'s in Bailouts back to the wealthy who lost their money in a Ponzi scheme they were putting on others. Thats like bailing out Madoff, and taxing the people whom he ripped off. Apparently the legal profession is in Cahout's with the Banksters as we have heard nothing of substance from the Lawyers. There is no real law anymore in the US, just the law as propogated by the banksters. And they apparently are paying off all those who legally should have been putting a stop to these to big to fail Gangsters on Wall Street and Banksters inside of and controlling 1600 Pennslvania Ave, DC.
written by breezer1, July 31, 2010
they have to lie jeff. the truth is called sovereign debt default.

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