John Williams – Consumers Crushed & Economy Collapsed

Saturday, March 31, 2012
By Paul Martin

KingWorldNews.com
March 31, 2012

nvestors have expressed confusion recently because parts of the economy are clearly collapsed, but restaurants remain packed in many areas. John Williams clears up the confusion by demonstrating that real GDP remains collapsed, and that the hype from Wall Street about a recovery is a lie. Williams, who founded ShadowStats, also illustrates, in reality, how the consumer remains “crushed.” Here is what Williams had to say about the situation: “Broad U.S. business activity remains far from being recovered, despite the ongoing GDP-reporting nonsense that shows inflation-adjusted economic activity above the peak levels that preceded the 2007 recession.”

John Williams continues:

“In an environment where politicians and Wall Street increasingly are hyping an economic recovery … Main Street U.S.A. usually has a pretty good sense of actual business activity, irrespective of the hype out of Wall Street or Pennsylvania Avenue.

As discussed in the hyperinflation report, a major reporting problem in the system is the understatement of inflation used in deflating the economic series. The use of understated inflation in deflating data results in an overstatement of the inflation-adjusted numbers. Following are graphs that represent official reporting or that have been corrected, at least partially, for inflation understatement. These graphs are updated from the referenced hyperinflation report.

The Rest…HERE

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