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Virtual Economy’s Phantom Job Gains Are Based on Statistical Fraud

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  • And More Fraud Is in the Works
  • America has left us. We now have the tyranny of the Orwellian state that rules, not by the ballot box and Constitution, but by force and propaganda.

Paul Craig Roberts, Institute for Political Economy

Submitted by Evergreene Digest Contributing Editor John Stoltenberg

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img/book.jpg July 7, 2014 | Washington can’t stop lying. Don’t be convinced by last Thursday’s job report that it is your fault if you don’t have a job. Those 288,000 jobs and 6.1% unemployment rate are more fiction than reality.

In his analysis of the June Labor Data from the Bureau of Labor Statistics, John Williams (www.ShadowStats.com) wrote that the 288,000 June jobs and 6.1% unemployment rate are “far removed from common experience and underlying reality.” Payrolls were overstated by “massive, hidden shifts in seasonal adjustments,” and the Birth-Death model added the usual phantom jobs.

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. 

Full story … 

Related:

Austerity%20Measures%20Graphic.jpgAusterity Is Poisoning The Economy, In 2 Charts, Mark Gongloff, Huffington Post

  • "Congress has severely damaged the economy with deep spending cuts in a misguided attempt to solve a short-term debt crisis that simply does not exist," wrote Center for American Progress (CAP) economists Harry Stein and Adam Hersh.
  • How Austerity Wrecked the American Economy

 

Austerity Is Poisoning The Economy, In 2 Charts

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  • "Congress has severely damaged the economy with deep spending cuts in a misguided attempt to solve a short-term debt crisis that simply does not exist," wrote Center for American Progress (CAP) economists Harry Stein and Adam Hersh.
  • How Austerity Wrecked the American Economy

Mark Gongloff, Huffington Post

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original.jpg 7/16/2014 | Austerity is like a bad tattoo: It's going to be with us, causing misery, for years to come.

The broad spending cuts that were the fruits of the Republican Congress' budget obsession of the past few years have already cost the U.S. economy $351 billion in lost economic activity, according to a new study by the Center for American Progress. This austerity will cost a total of $633 billion by the year 2020, according to the study. 

Mark Gongloff: Deputy Managing Editor, Business And Tech, at the Huffington Post

Full story … 

Related:

How Austerity Wrecked the American Economy, Kevin Drum, Mother Jones

  • Republicans are fighting to cut spending, while America is trying to recover from the worst recession since WWII. Ted Cruz and the tea party are trying to shut down Washington and are instead losing sight of what‘s really wrong with the economy. And they are still working toward crippling the economy.
  • It's the Austerity, Stupid
  • Paul Krugman’s right: Austerity kills

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The Deteriorating Economic Outlook, Paul Craig Roberts, Dave Kranzler, and John Williams, Institute for Political Economy

  • The first quarter contraction, especially our corrected number, implies a second quarter negative real GDP. In other words, the years of Quantitative Easing (money printing) by the Federal Reserve has not resulted in economic recovery from the 2008 downturn and has not prevented further contraction.
  • The Crash of 2016 Gets Closer Every Day

 

From the Archives | Undocumented immigration: paying the price of NAFTA

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  • A study published by the Carnegie Endowment for International Peace in December 2009 explains how this worked out in practice. ("Rethinking Trade Policy for Development: Lessons from Mexico under NAFTA")
  • The Economics of Immigration Reform

Emile Schepers, People's World

Tue, 08/03/2010 | The rationale for NAFTA (North American Free Trade Agreement), which came into force Jan. 1, 1994, was Ricardian (after the Anglo-Italian classical economist David Ricardo, who thought that each country should specialize in the production that most suited its climate and other characteristics).

Much of Mexico's rural population was engaged in maize and wheat farming, which is much more productive in the vast plains of the central United States and Canada than in Mexico's more rugged terrain. So the idea was to push the grain farmers off the land and move them into specialized fruit and vegetable farming, and into manufacturing which was supposed to be attracted to Mexico by the cheap labor of displaced farmers.

INS%20Visa%20Approval%20Stamp.jpg More... 

Related:

The Economics Of Immigration Reform, Matt Corley and others, Think Progress
While anti-immigrant groups use anecdotal evidence to erroneously claim <http://cis.org/UnemploymentAmongNativeWorkers>  that legalization would be disastrous for the American worker, passing comprehensive immigration reform would not only strengthen the labor market, it would promote needed economic growth.

The Deteriorating Economic Outlook

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  • The first quarter contraction, especially our corrected number, implies a second quarter negative real GDP. In other words, the years of Quantitative Easing (money printing) by the Federal Reserve has not resulted in economic recovery from the 2008 downturn and has not prevented further contraction.
  • The Crash of 2016 Gets Closer Every Day

Paul Craig Roberts, Dave Kranzler, and John Williams, Institute for Political Economy

Submitted by Evergreene Digest Contributing Editor John Stoltenberg

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Graph2-729x528.jpg July 8, 2014 | The third and final estimate (until the annual GDP revisions) of first quarter 2014 real GDP growth released June 25 by the US Bureau of Economic Analysis was a 2.9% contraction in GDP growth, a 5.5 percentage point difference from the January forecast of 2.6% growth. Apparently, the first quarter contraction was dismissed by those speculating in equities as weather related, as stock averages rose with the bad news.

Stock market participants might be in for a second quarter surprise. The result of many years of changes made to the official inflation measures is a substantially understated inflation rate. John Williams (www.shadowstats.com) provides inflation estimates based on previous official methodology when the Consumer Price Index still represented the cost of a constant standard of living. The 1.26% inflation measure used to deflate first quarter nominal GDP is unrealistic, as Americans who make purchases are aware.

John Williams, an expert on government economic statistics, has been a private consulting economist for more than thirty years. 

Dave Kranzler has years of experience in financial markets. 

Paul Craig Roberts is an economist and former Assistant Secretary of the US Treasury for Economic Policy.

Full story … 

Related:

The Crash of 2016 Gets Closer Every Day, Thom Hartmann, OpEdNews

  • How our corporate overlords are setting us up to fail (again)
  • While profits soar, wages continue to stagnate and anti-tax zealots gut the safety net — a recipe for disaster.
  • America's Economic Crisis, June 30, 2014

 

 

Section(s): 

The Crash of 2016 Gets Closer Every Day

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  • How our corporate overlords are setting us up to fail (again)
  • While profits soar, wages continue to stagnate and anti-tax zealots gut the safety net — a recipe for disaster.
  • America's Economic Crisis, June 30, 2014

Thom Hartmann, OpEdNews

http://media.salon.com/2014/01/wolf_wall_street4-620x412.jpg Leonardo Dicaprio in "The Wolf of Wall Street" 

Friday, Jul 4, 2014 | The denial of fundamental economic principles is setting the world up for another Great Crash.

Although wages have been flat or declining since the West started following Thatchernomics and Reaganomics in the late ’70s and early 1980s, the stock market has risen to all-time highs. Billions—hundreds of billions—have been made by individuals on Wall Street.

Thom Hartmann is an American radio host, author, former psychotherapist, entrepreneur, and liberal political commentator. He is the #1 progressive radio talk show host in the US and a New York Times bestselling author, including 4 Project Censored awards.

Full story … 

 

Related:

America's Economic Crisis, June 30, 2014, Compiled by David Culver, Ed., Evergreene Digest

  • “…it seems that our remedies are instinctively those which aggravate the sickness: the remedies are expressions of the sickness itself“. --Thomas Merton
  • Part 1: US Economic Output  Tumbled By 2.9 Percent In The First Quarter 
  • Part 2: A New Recession And A New World Devoid Of Washington’s Arrogance?

 

What the EFM is going on in Michigan?

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  • This week's (June 27) Clearing the FOG is described as "We take a look at the disturbing trends in Michigan. Emergency Financial Managers are being appointed by the governor to run cities and school boards, particularly in black majority communities, in a dictatorial fashion."  
  • Guests: Claire McClinton, Rev. Ed Pinkney, Maureen Taylor and Tom Stephens

Margaret Flowers and Kevin Zeese, Clearingthefog on Mixcloud

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Forces%20of%20Greed%20Radio%20Logo.jpg June 27, 2014 | We take a look at the disturbing trends in Michigan. Emergency Financial Managers (EFMs) are being appointed by the governor to run cities and school boards, particularly in black majority communities, in a dictatorial fashion. As our guest Tom Stephens writes, ”The Emergency Financial Manager regime imposed on Detroit is ‘an entirely new and unprecedented form of anti-democratic local government directly controlled by the corporate agents of ‘the 1%’ that is designed to steal everything: land, water, air, lives, and every right not associated with capital.” 

Pat Bagley 

The first Emergency Financial Managers were appointed to run cities in 2000, but a significant change occurred in 2011 with the passage of Public Act 4, the Local Government and School District Fiscal Accountability Act. This state law gave EFM’s unprecedented power to “exercise any power or authority of any officer, employee, department, board, commission or other similar entity of the local government whether elected or appointed.” Our guests will discuss how the EFM’s are dismantling cities to pave the way for privatization and gentrification and what people in those cities are doing to fight back.

Margaret Flowers and Kevin Zeese  are participants in PopularResistance.org. They also co-direct It’s Our Economy and are co-hosts of Clearing the FOG, shown on UStream TV and heard on radio.

Tune in here for an excellent radio program. 

America's Economic Crisis, June 30, 2014

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  • “…it seems that our remedies are instinctively those which aggravate the sickness: the remedies are expressions of the sickness itself“. --Thomas Merton
  • Part 1: US Economic Output  Tumbled By 2.9 Percent In The First Quarter 
  • Part 2: A New Recession And A New World Devoid Of Washington’s Arrogance?

Compiled by David Culver, Ed., Evergreene Digest

I%20Want%20You%20with%2010%20yr%20banner.jpgIf you like reading this article, consider joining the crew of all reader-supported Evergreene Digest by contributing the equivalent of a cafe latte a month--using the donation button above—so we can bring you more just like it.



Part 1: US Economic Output  Tumbled By 2.9 Percent In The First Quarter 

The so-called economic “recovery” is, in fact, a vast redistribution of wealth from the great majority of the population to the super-rich, whose wealth has more than doubled since 2009.

Andre Damon, World Socialist Website 

263fe7d0f0e40c0321b799a4dbd97ae1.portrait.jpg26 June 2014 | The US economy contracted at a 2.9 percent annual rate in the first three months of this year, the sharpest quarterly fall in output since 2009, according to data released Wednesday by the Commerce Department. The figure was the second revision to the gross domestic product (GDP) estimate released in late April, and is the biggest such revision on record.

The sharp contraction expresses the fact that, nearly six years after the 2008 crash, the US economy remains mired in slump. Behind the booming stock market, record corporate profits and CEO pay, daily life for broad sections of the population is dominated by unemployment, economic insecurity and falling wages. This was reflected in the Commerce Department report’s downward revision for consumer spending, which grew at the slowest pace in five years and added only 0.71 percentage points to economic output, compared to an earlier estimate of 3.1 percent.

Andre Damon: national secretary of the International Youth and Students for Social Equality (US)

Full story … 



Part 2: A New Recession And A New World Devoid Of Washington’s Arrogance? 

It is possible that the drop in first quarter real GDP is three times the official number.

Paul Craig Roberts, Paulcraigroberts.org

26 June, 2014 | A final number for real US GDP growth in the first quarter of 2014 was released today. The number is not the 2.6% growth rate predicted by the know-nothing economists in January of this year. The number is a decline in GDP of -2.9 percent.

The negative growth rate of -2.9 percent is itself an understatement. This number was achieved by deflating nominal GDP with an understated measure of inflation. During the Clinton regime, the Boskin Commission rigged the inflation measure in order to cheat Social Security recipients out of their cost-of-living adjustments. Anyone who purchases food, fuel, or anything knows that inflation is much higher than the officially reported number.

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. 

Full story … 

The U.S. Is Even More Unequal Than You Realized

  • When it comes to income inequality, no other developed economy does it quite like the U.S.A. If you need some proof, here it is.
  • America’s rotting empire
  • What's a Union For?

Maxwell Strachan, Huffington Post 

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05/01/2014 | The chart at right, from the Organization for Economic Co-operation and Development (OECD) using the World Top Incomes Database, shows how income gains between 1975 and 2007 were divvied up in 18 OECD countries for which the researchers had data. Nowhere did the rich benefit as much as in America.

As you can see, in some countries like Denmark the vast majority of income gains went to the bottom 90 percent -- Socialists! -- while nearly half of U.S. income gains went to the richest one percent because freedom, baby.

Maxwell Strachan is a business editor at the Huffington Post. He previously worked at Salon.

Full story … 

Related:

America’s rotting empire, CJ Werleman, AlterNet

  • Billionaires galore and a crumbling infrastructure
  • More proof we're in rapid decline: Not a single U.S. city currently ranks among the world's most livable
  • We're NOT Number 1: Guess Which Country Now Has a More Affluent Middle Class Than America?
  • 5 Ways American Policies and Attitudes Make Us Lonely, Anxious, and Antisocial

 

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What's a Union For? Carla Murphy, ColorLines

  • For many young workers facing a bleaker present and future than many current pensioners, advancing non-workplace issues affecting low-income and working class people of color makes the difference between joining up or observing from a distance. Some unions get that. The support Constance Malcolm, 40, received from her union exemplifies this trend, which is known as social justice unionism.
  • US Workers Among the Least Protected

 

 

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