REAL NUMBERS vs. OFFICIAL NUMBERS
Shadowstats.com calculates key statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest.
Consider the following Bogus Official versus Real Numbers:
Bogus Official Numbers vs. Real Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported October 15, 2010
U.S. Unemployment reported October 8, 2010
U.S. GDP Annual Growth/Decline reported September 30, 2010
U.S. M3 reported October 17, 2010 (Month of September, Y.O.Y.)
No Official Report / -3.71%
Note that Real Inflation is already 8.48%/year, in large part a result of excessive Q.E. in recent years.
One Necessary inference from that Real CPI Statistic is thatfor an investment to show a Real Profit the Total of its Appreciation plus Yield must exceed 8.48%/year.
So the First Step on the Road to Avoiding the Q.E. disaster that is coming is to purchase only Securities whose likely Prospective Total Return exceeds Real and Prospective Inflation (now 8.48%/year).
How many Equities or (other investments) are likely to do that?
Furthermore, note that Real GDP is a Negative 1.25%, not the positive 3.00% the Official Sources Claim.
That is, the Real Economy is contracting even more, not strengthening.
Couple this fact with the fact that Real Unemployment in the U.S. is 22.5% (and a number of similar Magnitude in several Eurozone Nations), andit is hard to see how the Consumers in those countries can generate sufficient demand (for Western or Asian produced goods) to generate an Economic Recovery, much less bolster corporate Earnings necessary for sustained robust Equities values.
And the Wealth of export-based Economies like China is based in large Part on Demand from the Contracting Economies of the U.S.A. and Eurozone.
OUR ECONOMY IS NOT RECOVERING AND WE HAVE NO LEADERSHIP THAT IS LEADING THE WAY TOWARDS SOLUTIONS THAT WILL TAKE US TO A SUSTAINABLE RECOVERY. WHILE OUR ENTIRE SOCIETY PRETENDS THAT WE HAVE LEADERS WHO ARE ENGAGED IN FIXING THINGS AND THAT THE DOCTORED AND DISTORTED OFFICIAL NUMBERS SHOW THAT THINGS ARE IN FACT GETTING BETTER, WHAT IS REALLY HAPPENING IS THAT THINGS CONTINUE TO GET WORSE MAKING EVENTUAL SOLUTIONS THAT MUCH HARDER TO FIND.