Monday, June 28, 2010

Shadow Boxing The Facts

Shadow boxing is a technique that boxers use in training where they throw punches at the air. Its purpose is to increase muscle strength and to work on rhythm. Sometimes I wonder if the Fed isn't shadowboxing with the sheeple. is a website dedicated to providing accurate data related to publically released government data. Over recent years, many metrics such as the consumer price index (CPI) and unemployment have had there definitions and formulas changed. This presents a great challenge when analyzing data on a historical basis. It's no longer "apples to apples". Often we like to compare a current cycle with one in the past. For instance, in the past two years, many have made comparisons to the Great Depression. If these metrics are not calculated the same way, then the comparisons are worthless.

Below are two graphs created by Shadowstats. Note the difference between accuracy and what is reported by the government and the media.

Note that real unemployment is much worse than being reported.
Note that the CPI formula was changed during Clinton's term.

As I always say, do your own research.

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