Western Debt Crisis Is a Revenue Crisis: Opinion
NEW YORK ( BullionBullsCanada) -- It is ironic that the U.S. -- which has both pioneered and perfected lying with numbers with its official statistics -- is now the only place to obtain realistic economic data in many important categories.
This is due entirely to the tireless efforts of John Williams of Shadowstats.com, as well as the efforts of less visible sites and individuals who have built upon that body work. Williams produces the only data on U.S. inflation (and many other key statistics) using the same methodology for each year's calculation.
Conversely, as I have explained on previous occasions, the U.S. government is continually "moving the goalposts" with its statistical lies. It is continually changing the methodology of its calculations. Not only are these "changes" comprised of ever more dubious/absurd "adjustments" and "assumptions" but this intentional deceit is compounded by refusing to update old data with the new methodology -- the only possible means to produce consistent measurements .
Instead, the U.S. government's statistical liars simply string together these disconnected series' of calculations -- thus literally comparing "apples" to "oranges." We can see not only proof of the deceit, but a clear indication of the motives for these lies when we examine charts which include both the official government lies along side data produced from Williams consistent (and statistically valid) methodology.
The two charts below not only demonstrate unequivocally that the Western "debt crisis" is a revenue crisis (not a "spending crisis"), but we can clearly see the efforts of the U.S. government statisticians to hide the true nature of the crisis -- by creating phony data to suggest we are experiencing a spending crisis instead.
It is truly unfortunate that we are forced to rely upon U.S. data to illustrate this revenue crisis. The U.S. has devoted a much larger percentage of its government expenditures to military spending (by several multiples) than any other nation in the post-Industrial Revolution era. The Soviet Union tried to match the massive Reagan arms-race of the 1980's -- and was completely bankrupted in the effort. Thus the "curve" of the spending chart is severely distorted by huge (and well-documented) explosions in U.S. military spending.
Looking at the chart below, the green line represents Williams' data (i.e the Truth). We see U.S. government spending surging in the latter half of the 1960's (the Vietnam War). We see it accelerate again in the 1980's (the Reagan arms-race). But note that in the last few years of the Reagan regime -- while military spending was still recklessly accelerating -- that actual spending had topped, and even began to decline slightly.