By Greg Hunter’s USAWatchdog.com
In February of last year, Fed Chief Ben Bernanke testified in a Senate hearing that he thought the recession would likely be “over in 2010.” In September of 2009, The Fed Chief declared “…From a technical perspective, the recession is very likely over at this point.” In December, the Obama Administration’s top economic advisor, Larry Summers, said, “everyone agrees that the recession is over.” Broadcast and print mainstream media are constantly proclaiming we are in a recovery, but who is the recovery for? Not the 27 million unemployed or underemployed people in this country, that’s for sure.
I was at a party this weekend, and one of the folks there said what they are seeing in the media (mainstream) is not what they are seeing in their company and in their community. This person said they felt it was worse than what is being reported, and they were scared that things will get even worse. I think many people feel the same way. What they’re told about the recession being over, or that we are in recovery, is not consistent with what their gut is telling them.
The latest Shadow Government Statistics report contradicts the Fed and the Obama Administration’s upbeat assessment of the economy. I call this report a confirmation of the common man’s gut. The SGS report said, “The Recession Is Over? Both the Federal Reserve Board (FRB) and the St. Louis Fed are reflecting a mid-2009 end to the recession, which I refer to variously as the ongoing severe economic downturn, depression….” Economist John Williams, the founder and creator of SGS, thinks the money supply is actually contracting, and that is a bad omen for the economy. Williams says the shrinking money supply “… is signaling an intensified downturn ahead.”
The SGS report also says annual inflation was much worse than the 2.7% that was reported by the government this past Friday. Williams says the real inflation rate is now 9.7 percent, if you calculate it the way the government did in 1980. The government uses gimmicks to distort the real inflation rate to make things look better than they really are, and that will continue right along with real inflation increasing. SGS says, “What follows in the months ahead will be still higher annual inflation, with the pace picking up in response to Mr. Bernanke’s efforts at formal U.S. dollar debasement, a further weakening of the U.S. dollar and a resulting continued spike in oil and energy prices, as a well as in other dollar-denominated commodities.”
I have quoted only a tiny portion of the most recent SGS report. If you are a serious investor needing real information in a timely fashion, you can buy a subscription to Shadow Government Statistics. Here is the link: Shadow Government Statistics.
I get no compensation whatsoever from SGS. I use SGS as a source because it is one of the few places to get real data without government spin and distortion.
By the way, this week the Producer Price Index will be released on Wednesday. SGS is predicting that “annual PPI inflation should pick-up sharply in December.” Let’s see if SGS is right…again.