By Vern Gowdie – The Gowdie Letter (Australia) –
Let’s start this week with a rhetorical question: Do you feel something is not quite right with the world, but you cannot put your finger on it?
Of course you do. That’s why you are reading this newsletter and not the mainstream market commentary on the investment industry.
Former British Prime Minister Benjamin Disraeli is credited with the saying: ‘There are three kinds of lies: lies, damned lies, and statistics.’
Nothing has changed since the mid-1800s.
There is so much data manipulation out there that it would literally do your head in if you were to try and make sense of it.
To minimise the risk of a migraine, this week, I’m only going to give you the tiniest of insights into the world of economic make-believe.
This one example — sourced directly from the US government’s Bureau of Labor Statistics (BLS) website — will demonstrate why a host of other government stats (including GDP growth and unemployment figures) should be taken with a grain of salt.