Friday, December 10, 2010

The Old "Fool 'Em" Game--Inflation and Debt

Think that "the deficit" is pretty damn big?

You don't know the HALF of it.

The gimmicked accounting standards, as established during the Johnson era, and as used today for official, unified budget reporting, show a 2003 deficit of $374.3 billion. Using GAAP reporting (without Social Security reporting), the official GAAP deficit for 2003 expands to $665.0 billion. Including accounting for Social Security and related areas, the 2003 deficit balloons to $3,702 billion, or $3.7 trillion. The accounting reflects no adjustment for the new, more expensive Medicare program.

And that was 2003, folks.

The linked article also covers the Greenspan Bullshit 'Hedonics' inflation lie.


...When gasoline rises 10 cents per gallon because of a federally mandated gasoline additive, the increased gasoline cost does not contribute to inflation. Instead, the 10 cents is eliminated from the CPI because of the offsetting hedonic thrills the consumer gets from breathing cleaner air.

...which is distinct from the narcotic effect of believing the numbers.

The 'responsible' economists, of course, will tell you that 'hedonics' are perfectly fine measures, and that 'core' inflation produces just dandy measures.

To which I respond: anything implemented by Clinton and "Bubbles" Greenspan is automatically suspect.

HT: BayouRenMan

1 comment:

commoncents said...

Great post! I'm glad I found your blog!!

Common Cents