SGM Metals: SGS 'Oops, Govt. Inflation Number ONLY Off by 10%'!

Feb. 7, 2012 - PRLog -- Paul Craig Roberts reports to infowars.com: [ The charts below come from John Williams Hyperinflation Report, January 25, 2012. The commentary is supplied by me. Here is the chart of real average weekly earnings deflated by the US government’s own measure of inflation, which as I pointed out in my recent column, Economics Lesson 1, understates true inflation.

This chart (below) shows the behavior of inflation as measured by “our” government’s official measure, CPI-U (bottom line) and John Williams measure which uses the official methodology of when I was Assistant Secretary of the US Treasury. The gap between the top and bottom lines represents the amount of money that was due to Social Security recipients and others whose income was indexed to inflation that was diverted by the government to wars, police state, and bankers’ bailouts.

These graphs courtesy of John Williams make it completely clear that there is no economic recovery. In place of recovery, we have hype from politicians, Wall Street, and the presstitute media. The “recovery” is no more real than Iraqi “weapons of mass destruction” or Iranian “nukes” or the Obama regime’s phony story of assassinating last year an undefended Osama bin Laden, allegedly the mastermind of Islamic terrorism, left by al Qaeda to the mercy of a US Seal team, a man who was widely reported to have died from renal failure in December 2001, a man who denied any responsibility for 9/11.

A government and media that will deceive you about simple things such as inflation, unemployment, and GDP growth, will lie to you about everything.]

This is quite an amazing piece of work sited above, in that it’s author in none other than Dr. Paul Craig Roberts. Dr. Roberts is the former Assistant Secretary of the Treasury for Economic Policy under President Ronald Reagan as well associate editor of the Wall Street Journal. Dr. Roberts is credited as being the father of Reaganonomics and therefor is no stranger to economic policy nor the impact of said policy on the macroeconomic picture. He has worked in government and briefed presidents on the economy in morning daily briefings for many years and while doing so came to know and work with none other than John Williams. Mr. Williams too is quite an amazing high level government source for information related to the economy. During his time in Washington DC, as an economist he was tasked with compiling and computing the economic data to paint an accurate picture of the economy for the president and policy makers. As an amazing economist and statistician who wanted to accurately depict the economic environment so that his fellow citizens could better invest their monies and protect their retirement he became FED up with being encouraged to ‘massage the economic data’. The frustration of being forced to paint a rosier picture than what may have actually been the case eventually motivated him to remove himself from working with the government & establish an organization called ‘Shadow Government Statistics’. SGS compiles the exact same economic indicators that are used by current administrations and accurately compiles the data in order to provide a more precise picture of the economy so that investors can base their investment decisions on more accurate assessments.

Now that we better understand the men who have compiled the above data, consider for a moment that they also share another common theme, the government isn’t telling the truth to the public. Understandably their position is that they are doing this for the good of the nation, so as to not scare investors out of the stock market and give a global impression that if Wall Street is solid then the economy is too. Now that we have not one but two former govt. economic sources, communicating at their own peril, that the economy is not in a recovery and instead the data is simply being massaged to give the perception of a better economic scenario, what do you think you should do with this information? The answer is simple, if you realize that the truth regarding the economy would do harm to the investor psychology then you should take note of this and move ahead of the investing crowd figuring this out on their own.

Imagine if tomorrow president Obama announced in a State of the Union address that the economy was NOT in a recovery and instead that we were going into a decade long recession or even worse a depression. What would every investor do immediately? They would rush into wealth preservation hard assets such as gold & silver bullion in hopes of protecting their life savings & portfolios as the panicked investing public was dumping every paper derivative investment they had like stocks, bonds, mutual funds, annuities, and so on. This would make a giant sucking sound in the stock & bond markets and everyone rushed out of them. The markets would close to try to limit the damage and you would be stuck in your investments and your ‘crazy’ neighbor who bought gold back in the 1980s will be doing back flips in his yard! Is this going to happen? Probably not . . . . But can you risk it? Now if this hypothetical scenario did play out and you had already moved 1/2 or 1/3 of your portfolio into precious metals you might just be doing back flips with your neighbor wouldn’t you? We have never been so mislead, for our own good of course, as we currently are and for that reason you have no choice but to assume if they are willing to fudge the numbers this much, the alternative must be much worse. Prepare for the possibilities that may come from investors putting the pieces of this puzzle together the same way I am here for you. Establish your ‘I’m not sure what the future holds’ insurance policy in gold & silver today and begin to participate in the sound money debate by utilizing alternative currencies.

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SGM Metals strives to offer not only wealth preservation precious metals investments to offset weakness in the economy, but to help educate our family of clients to better identify the threats to their financial security.