U.S. government converts inflation into GDP

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investorzzo
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U.S. government converts inflation into GDP

However, with inflation in the U.S. back, so is telling BIG lies about GDP. The U.S. government claimed that the economy 'only' shrank by 1% in Q2 of 2009, but it was only able to produce such a rosy number by pretending there was zero inflation (0.2% to be precise).

As I stated earlier, official U.S. inflation was 8.4% in June, meaning that real inflation was much worse. I have pointed out on many occasions that those who want to see accurate U.S. economic statistics need only visit the site of economist John Williams: shadowstats.com. He uses the identical methodology which the U.S. government used a generation ago, before it began distorting these numbers with ever-larger fabrications.

Williams has reported that so far this year inflation was running at over 6%, and that was before the huge jump in June. It's a matter of simple arithmetic that with inflation being more than thirty times as large as the ludicrous “deflator” which the U.S. government used to adjust Q2 GDP, that this “statistic” has no connection with the real world.

http://seekingalpha.com/article/152904-u-s-government-converts-inflation...

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