Figures lie and liars figure. This is an old saying but it has never been more true than right now. For example, have you noticed that though the government keeps releasing data suggesting that the recession is over, but when you take a look around it doesn't seem  that way?  Well, it's all in the how the numbers are kept, or as I would say, cooked.

Take unemployment statistics.  On New Year's Eve the government released another report showing the amount of jobless claims went down "unexpectedly" In December.  But how could something be unexpected when the government manipulates the books?  From an all time high of about 650,000 per week we are down to about 450,000 new jobless claims per week.  That is still a lot of claims, although it is down 29% from the peak when unemployment hit 10.2% so that is a good thing, right?  Wrong.

You see, when unemployment benefits run out and people can't collect anymore, they are no longer counted as "unemployed" but rather as "out of the work force" because the government assumes that they are no longer seeking employment.  Make sense?  Of course not, but that's how the government makes it appear like the number of Americans who have lost their jobs is somehow static - and even improving.  However, when you add back in the nearly 6 million Americans no longer counted (but still unemployed) it looks just as awful as it did back when 650,000 per week were filing new claims.  Confusing?  If it isn't it should be! 

How about inflation, which seems to be really low in spite of guys like me saying it is on its way
or even here already?  Doesn't the CPI (Consumer Price Index) number show only a small amount of inflation?  Well, its true, if you count only "core" inflation, but that number excludes anything the government doesn't think is convenient for it to report - like those silly food and energy costs.  That's right, these costs are not included in the core number that is reported. So these reports falsely and dangerously mislead consumers that inflation is not a problem - when in fact, it already is and it's accelerating!

Why would the cook the books like this?  Because (and make no mistake about it) it is in the
government's interest to make things look better and cause inflation to try and cover up all the
spending and waste.  Seem cynical?  Well, I prefer to call it skeptical and I always remember
not to just believe something simply because I am told it is true.  That helps me make better decisions and protect myself, and you, during these continuing rough times.