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Here’s A Shocker: The Current Mess Was Caused By False Statistics

December 21, 2009

Economic Growth R.F.Wilson writes: In the bad old days of the Soviet Union no one really paid any attention to economic data. It meant absolutely nothing. It was designed to hail the benefits of the socialist economy, and the many advantages for the people living in the USSR. Outstanding results were reported by all industries, even despite the fact that the Soviet Union produced the worst consumer goods in the world and bought wheat and grain from the West. Everyone knew that the stats had nothing to do with reality but couldn’t do anything about it. Until, that is, the economy simply crashed one day, bringing down the Soviet Union.

China was, and still is, no better than the old USSR. You can ask anyone in China and they will tell you how the stats had been forged in the past and how they are still ‘massaged’ and juggled, to please the communist leadership. I would even go as far as saying that the whole ‘Chinese economic miracle’ was created not at the factories and plants but in the offices of the local branches of the Communist Party and in the statistical bureaus. In a communist state economic data can never be reliable, because it serves a propaganda purpose: to convince everyone that the Party is capable of delivering miraculous economic results. And that is why the people are called upon to love their Party, and cherish it, and allow its top officials to live in luxury.

If you look back at the economic data of any country where the communists were in power you would find out that these mighty nations were doing very well indeed, even though their respective populations never really felt the impact of that economic growth they were going through. And even now, in countries like Cuba, North Korea, Vietnam and Laos, statistics still reveal the tendency to play up the state of the economy, even though it is not doing well.

So what of it, you might ask? So what if communist regimes falsify their economic data? What’s the big deal in that?

The big deal, ladies and gentlemen of the democratic West, is that your governments have been playing the same game, for the last ten years at least. If not more. And these games eventually resulted in the Western economy crashing down, under the weight of false statistics that were propping up disastrous banking practices and incompetent economic policies. The big news that some economists are now telling us is that the current recession has started much earlier than we were told. The banking crisis, for example, was already happening in 2004, the time when I first heard from some people in the City that private assets were quietly moved abroad in the face of a financial meltdown. At the time it was already known that the then Chancellor, Gordon Brown, had blown a hole the size of the North Sea in Britain’s budget, wasting money on social programmes that benefited no one. It was also known then that the banks had amassed massive bad debts and were hastily packaging them to sell them on.

The Bank of England must have known about it, but was keeping quiet so as not to upset the Iron Chancellor, as that buffoon Brown was known then. By the way, Brown, in all his time as Chancellor, has never delivered a single budget in the House of Commons that was not ‘cooked up’ to exaggerate his achievements. Bloody communist.

Other West European countries and the United States were no better, issuing confusing and misleading economic data and depending on consumer debt to pull them out of the impending economic crisis. Everyone knew by then that the world economy was finished, but everyone played along. Not least the new so-called emerging economies like India, Brazil, Argentine and some others, who suddenly realised that they can play the same game as their Western partners and boost their economic performance on paper alone. That was why we witnessed such strange disparity between the tiny rich minorities in these countries and the vast majorities that lived, and still live, in poverty, or very close to it.

The whole economic boom of the 00 years, ladies and gentlemen, was a just a big bluff, propped up by misleading stats and rigged data. It was bound to explode at some point, and it did. And the most depressing thing is that the very same governments are now feeding us all with false statistics once again – to convince everyone that they are pulling us out recession.

You want examples: I’ll give you just one: the British government is claiming that the rate of inflation in the country is 1.9 per cent per annum at the moment. And the real figure? It’s probably around 30 per cent. How’s that for massaging the stats?

– End –

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