• 208 days Could Crypto Overtake Traditional Investment?
  • 213 days Americans Still Quitting Jobs At Record Pace
  • 215 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 218 days Is The Dollar Too Strong?
  • 218 days Big Tech Disappoints Investors on Earnings Calls
  • 219 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 221 days China Is Quietly Trying To Distance Itself From Russia
  • 221 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 225 days Crypto Investors Won Big In 2021
  • 225 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 226 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 228 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 229 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 232 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 233 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 233 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 235 days Are NFTs About To Take Over Gaming?
  • 236 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 239 days What’s Causing Inflation In The United States?
  • 240 days Intel Joins Russian Exodus as Chip Shortage Digs In
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

More On "Erroneous" Government Data - So What!

This article was originally published at Gold-Eagle

A while ago I posted an article that dealt with an unusual pattern of 7 out of 8 adjustments to the initial claims data being in the direction of negative news for the labor market. I pointed out the low probability of this being a chance phenomenon, and mentioned that I would follow it for a while longer before concluding it was in fact not a chance phenomenon. Well gaze upon a full quarters data (13 weeks) in Table 1. With only one exception, the initial report underestimates the severity of unemployment claims. The probability of seeing 12 or more reports in the same direction by chance is only about 17 in 10,000. Something is going on with their reporting system!

If you add this preliminary information about the "errors" in reporting economic data to the rather large base of information concerning the manipulation of previous metals markets you've got a rather odious concoction.

Table 1
Initial Claims
Date of Correction Actual Prior
Week's Claims
Prior Week's
First Report
Under(-)/Over(+)
Estimate
07/31/03 391000 386000 -5000
08/07/03 393000 388000 -5000
08/14/03 396000 390000 -6000
08/21/03 403000 396000 -7000
08/28/03 391000 386000 -5000
09/04/03 394000 398000  4000
09/11/03 419000 413000 -6000
09/18/03 428000 422000 -6000
09/25/03 400000 399000 -1000
10/02/03 386000 381000 -5000
10/09/03 405000 399000 -6000
10/16/03 388000 382000 -6000
10/23/03 390000 384000 -6000
Average  =   -4615

Some suggest that if only the information about erroneous economic statistics and manipulated precious metal markets were made public then the people would demand the political changes necessary to "fix" these items. Maybe that is so, but at least two underlying causes of these factors would not be solved and would just give rise to alternative subterfuges and confabulations. What are those underlying factors?

1. Through our educational system, the media, and the political class a belief has been instilled in the populace that you can have personal freedom without economic freedom. Much has been written about this fallacy and I shall not dwell on it here.

2. A manipulation of the tax system has been engineered so that a pro big-government, pro-big taxation majority has been created. The major economic support for this majority is a tax system, so far in the Marxian direction of "to each according to his needs from each according to his ability", that the most productive minority is a permanent and increasing prey to the rest of society. This verbal description is made more concrete by the following statistics of a few years ago:

Table 2
Comparison of Percent of Income Earned
& Percent of Federal Income Tax Burden
Income % of Federal Tax Burden % of All Earned
Top 1% of earners 37.4% 20.8%
Top 10% of earners 67.0% 46.0%
Bottom 50% of earners <4.0% 14.0%

You can see from the extremely skewed distribution of tax burden among the three groupings represented that the government, through its tax law creation, has produced a majority of people who pay virtually no Federal Income Tax. This is a majority of the population who has a vested interest in keeping the government big, expropriating income from the producers, and maintaining many "programs" for them. This is a group that has been schooled and induced into valuing security over freedom. With the label "entitlement" fastened to an ever more numerous, and individually larger set of programs, they assume a right to the fruits of another's labor. Individuals who have been conditioned to value the economic liberty of others so lightly will not call for the government changes necessary regardless of the stories about market manipulation, fiat currency theft and "erroneous" economic data reporting. This is a task that might well be beyond an educational and media system so damaged with respect to understanding individual liberty as it was spelled out in the Constitution and Bill of Rights.

Back to homepage

Leave a comment

Leave a comment