LD, and anyone else who may be interested, I have a post up today that tries to explain some basics of central banking and why it is important to know about the Fed. I would be so happy if you stopped by, gave it a read, and passed it along to anyone you think may enjoy it: http://sonicninjakitty.wordpress.com/2009/12/23/this-ones-for-the-girls/

Merry Christmas!

What happened is that when this lie was put forth, the stock market gained considerable growth in stock value. Gold probably then remained steady since the investors perse know that the government over estimated and was lying. If investors would have been naive about that number then gold would have dropped big time. Now when the revise figure comes out, gold can resume its upward movement and the stock market can get their bonus and fat checks.

Remember my friend that IBM sold its personal computer division to China.

Remember that 1) the computers used to make that the initial estimate were Super super mega duper IBM computer build for millions and millions of dollars for the government and the treasury; and 2) those are the same computers that compute the later figure also.

Ask yourself how come the formula or set of equations and statistical data computed an error to begin with? Are the IBM computers junk? No they are not junk, the equations are not made by IBM perse but probably by RAND and other financial institutions and willfully put in operation by the treasury.

Ask yourself, if an error was made in the third quarter of 2009 (which by the way, errors in every quarter as far as IBM and Rand etc. have been in cohort with the government to produce these reports) would a bright mathematician from MIT get to work to revise the equations that made those kind of mistakes? Never.

Then: What happened?

Simply: You were stolen some money. I don’t know if they stole from you, but they certainly stole from me. But if they did not stole from you, they certainly stole from other members of your family. The financial system is simply a set of values that steals from each and every individual that is not connected to the mother-sucker.

Statistics aren’t perfect, and mistakes get made. But what are the chances that those revisions would all end up being worse, not better, if it were mere mistakes or “more information”? If that were the case, you’d see some revised to be worse, some revised to be better. But almost all the revisions have been negative.

That doesn’t happen by chance.

I was listening to a radio program this morning in which an “economic expert” was attempting to explain to a host of bewildered callers that low inventory levels in retailers meant the economy was all better.

The economic expert explained that shoppers would not find what they wanted on the shelves during this holiday season, so retailers would panic, and suddenly stock more items and hire more people to sell all these new items.

The program hostess was working this angle with the expert for all she was worth, but it simply was not “selling”.

Many of the callers were not planning on shopping much at all this holiday season. Most were experiencing underemployment or unemployment and feeling the pinch – some in truly terrible ways.

Yet the “economic expert” droned on and on about how these folks were not finding what they wanted on the shelves due to shrinking inventory – and that this was a good sign.

We live in bizarre times when GDP being worse than initially calculated (invented?) is supposed to be good news.

Exactly how much of this 2.2% (and falling) they are crowing about is related to direct government stimulus (C4C and the home buyer credit)?

Thanks for the very pertinent article, LD.