Showing posts with label no recovery. Show all posts
Showing posts with label no recovery. Show all posts

Wednesday, August 18, 2010

Deceptive Economic Statistics: While the economists lied the US economy died

Paul Craig Roberts
Infowars.com
August 17, 2010

On August 17, Bloomberg reported a US government release that industrial production rose twice as much as forecast, climbing 1 percent. Bloomberg interpreted this to mean that “increased business investment is propelling the gains in manufacturing, which accounts for 11 percent of the world’s largest economy.”











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Secretary Treasury Tim Geithner welcomed us to “the recovery.”






The stock market rose.

Let’s look at this through the lens of statistician John Williams of shadowstats.com. Williams reports that “the primary driver of a 1.0% monthly gain in seasonally-adjusted July industrial production” was “warped seasonal factors” caused by “the irregular patterns in U.S. auto production in the last two years.” Industrial production “shrank by 1.0% before seasonal adjustments.”

If the government and Bloomberg had announced that industrial production fell by 1.0% in July, would the stock market have risen 104 points on August 17?