I'm Not Sure How The Government Can Report GDP And Payroll Numbers This Absurd And Expect Anyone To Believe Them!

• I’m Not Sure How The Government Can Report GDP And Payroll Numbers This Absurd And Expect Anyone To Believe Them! 
  by http://truthingold.blogspot.ca/ 
  Just when you think things can’t get any more ridiculous, magically they do.  Your country’s revised GDP number is an insult to the intelligence of anyone  with an I.Q exceeding that of a gerbil.  My conclusion is that there is something  horribly wrong in the overall system and the powers- that- be are trying to  groom things prior to the revelation of the truth.
  –  A well-known Investment Strategist in private correspondence with me yesterday (private except for NSA surveillance)
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  I was going to write out a detailed analysis of yesterday’s “advance GDP estimate” for Q3 and not get into the employment report number just released today.  But today’s jobs gain report for October was so absurd that I’m not really sure it matters the extent to which the details are dissected and analyzed for credibility because the headline print for both numbers is so unbelievable that it would stretch the imagination of history’s greatest fiction novel writers to come up with them.  When you write fiction, you have to give your audience some small thread of a reason to “suspend disbelief.”   But the GDP and Non-Farm Payroll reports are just too inconsistent with just about every private survey on the economy to allow even for the temporary suspension of disbelief.
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  I almost feel like I would be insulting the intelligence of the reader to dive into some of the most troubling sub-components of the headline data because the headline numbers themselves are just too absurdly beyond credibility.  Here’s what John Williams of Shadowstats.com, who’s collected, analyzed and written about Government economic reports for decades, has to say about the GDP report:
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  The GDP remains the most-worthless and the most-heavily modeled, massaged and politically-manipulated of government economic series.  It does not reflect properly or accurately the changes to the underlying fundamentals that drive the economy.
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  Just briefly on GDP:  Yesterday’s 2.8% headline number – and remember this is a “seasonally adjusted annualized” number – included .89% which was attributable to inventory build.  Now, we know most big manufacturing firms are posting flat or declining revenues, which means end-user demand is declining.  So I’m not sure why businesses would be building inventories, especially since the inventory build added .5% to Q2’s GDP print.  Why they would continue to build even more of something that no one seems to be buying is beyond logic.  I explained this dynamic with regard to automobile sales reported for October, which you can read about here:  Misleading Auto Sales Report.   I will say that the GDP headline number was 50% higher than Wall Street was expecting and most of that 50% is comprised of this inventory build.  No one expected it because it doesn’t make sense to anyone based on the true fundamentals of the real economy.
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