Posted on July 30, 2013 by WashingtonsBlog
Manipulating Bad Financial Data
Bad government policy has created a years-long unemployment problem. But instead of fixing the problem, the government is trying to paper over it. We’ve known for a long time that the Bureau of Labor Statistics fudges the numbers to make unemployment look lower than it is really is. BLS itself has admitted that its “adjustments” skew unemployment data during recessions. Indeed, the former head of the BLS recently said BLS statistics are B.S. … and that unemployment is much higher than the government is letting on.
The Bureau of Economic Analysis is revising 84 years of economic history … which will make the economy magically look better.
Government agencies have helped banks manipulate commodities prices for decades.
The government twisted statistics and intentionally lied when it pretended that the banks it was bailing out were solvent
The government has long ignored energy and food prices when reporting on inflation.
Fraud is Wall Street’s business model, which is – unfortunately – being supported by the government.
The government helped cover up the crimes of the big banks, used claims of national security to keep everything in the dark, and changed basic rules and definitions to allow the game to continue. See this, this, this and this.
It is not only a matter of covering up fraud that has already happened. The government also created an environment which greatly encouraged fraud.Here are just a few of many potential examples:
- The SEC has shredded financial documents for decades, to help cover up financial shenanigans
- The Treasury department allowed banks to “cook their books”
- Business Week wrote on May 23, 2006:
“President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations.”
- Regulators knew of and allowed the use of debt-hiding accounting tricks by the big banks