'Numbers racket' exposes potential disaster for economy, markets
By Paul B. Farrell, MarketWatch
Last update: 10:13 a.m. EDT May 20, 2008
This update of a story originally published May 19 fixes the title of Kevin Phillips book "Bad Money: Reckless Finance, Failed Politics & the Crisis of American Capitalism."
ARROYO GRANDE, Calif. (MarketWatch) -- Excerpted
2009 Sequel: Script exposes diabolical cover-up conspiracy
Flash forward: Real life, Washington, new leaders, a new Congress, old wizardry. Be forewarned: No matter who's elected president, America will soon see a massive statistical curtain pulled back, exposing a con game of historic proportions. And when that happens, you and I will suffer another ear-splitting global meltdown, bigger than today's housing-credit crisis, dragging us deep into a recession and bear market for years.
Cast: New 'leading man' from old Nixon political machine
Yes, the lead character pulling back the curtain is none other than Kevin Phillips, a former Republican strategist for Nixon, and today America's leading political historian. Phillips just published "Bad Money: Reckless Finance, Failed Politics & the Crisis of American Capitalism," everything you need to know about today's credit meltdown.
Scene 1: Numbers racket hiding behind Washington curtain
Scene 2: Statistics, Washington's new WMDs, a time bomb
Scene 3: Backflash, 'It's always the cover-up, stupid!'
Scene 4: Real numbers torture us ... like water-boarding!
How bad is it? "The real numbers ... would be a face full of cold water," says Phillips. "Based on the criteria in place a quarter century ago, today's U.S. unemployment rate is somewhere between 9% and 12%; the inflation rate is as high as 7% or even 10%; economics growth since the recession of 2001 has been mediocre, despite the surge in wealth and incomes of the superrich, and we are falling back into recession."
Scene 5: Most economists hushed, work inside conspiracy
Scene 6: No integrity, they cannot be trusted to tell truth!
The same can be said of any government report, every speech made by today's leaders: All hype, lies and propaganda intended to deceive us. d for everyone to drink