The U.S. Congress and President Biden just agreed on a consensus bill to enable the U.S. government to continue borrowing and spending money beyond its income levels, and to continue paying US debts that are coming due. This is being reported in the establishment media as a great accomplishment, but what is the real state of the American economy? According to a private statistical analysis entity, the real state of the American economy is not good. The entity I am referring to is a private economic analysis firm which is apolitical, but it has a summary of its most recent findings available at its website, shadowstats.com (first link). This post is to pass on to readers some underlying facts about the American economy that you will not be told by the U.S. government or by the establishment media. If you skip to the very bottom of the first link, you will see this statement: “Have you ever wondered why the CPI, GDP and employment numbers run counter to your personal and business experiences? The problem lies in biased and often-manipulated government reporting.” The content of the link being cited shows just how extensively the real world data is being “manipulated” by the government and official reporting sources. The vast majority of the public has no idea how extensive the data manipulation is, but you can be sure all insiders are aware of the real facts contained in the first link. Since the insiders all know the real state of the economy, I think you should know as well!
The first link offers a wealth of information, but it can border on “information overload” at times. While statistical wonks might love reading all of this report, the average person will want to learn just the major points it offers. I will offer below what I think are some very salient points that this financial analysis firm had to say. Please keep in mind that amidst the statistical information, there are many different inflation and economic measures being reported. Some are month-to-month, some are year-to-year and others are year-to-date. It can be confusing reading so many statistical comparisons if one does not pay careful attention to the time comparisons being measured.
The report states that containing inflation is an “intractable issue” for the Central Bank. It adds that “…the U.S. Economy already was and remains in intensifying recession.” The report mentions that there is a real decrease in wages when one compares the increase in wages to the greater increase in the rate of inflation. Shadowstats calculates an “alternate CPI” which endeavors to report the real inflation rate without the political manipulations which government statisticians invariably include in their calculations. This report states: “The Shadowstats Alternate CPI held at 12.9% in April 2023 and March, down from 14.1% in February.” The officially reported rate of inflation in the US economy is somewhere around 5%, but that woefully understates the real rate of inflation which the government will almost certainly never acknowledge. Did your income go up 12.9% from a year ago? No? Neither did mine. The real rate of inflation is steadily and relentlessly wrecking family balance sheets and the U.S. economy. Governmental and Fed actions should be based on the real world, but obviously that is not happening. Next year is an election year and incumbents do not want the voters to know the truth about the inflation rate or the economy in general.
If you scroll to the very bottom of the first link, you will find a helpful graph which plots the Shadowstats-calculated rate of inflation and the “official” rate of inflation reported by governmental sources. Both show a small recent reduction in the in the inflation rate, but the Shadowstats calculation shows that the real state of the economy is much worse than officially reported. In what appeared to me to be a confusing item, the graph appeared to report a current inflation rate of approximately 8.3% although the written commentary earlier cited in the link reported a 12.9% rate of current CPI inflation. This brings to mind an arcane detail in any inflation-related comparison or chart. Price Inflation and Monetary Inflation are not the same thing although the average layman would have a hard time distinguishing the difference between the two metrics. We do know that the Fed wildly increased the money supply during recent years and especially during the Covid crisis. The monetary inflation was so great due to the Fed’s money creation policies that we may never know just how large it really was.
The report also states that by raising interest rates, the Fed won’t really solve the inflation problem because the inflationary increases are not primarily caused by an “overheating economy.” Indeed, this report observes that “The U.S. Central Bank appears intent on using surging interest rates to drive the U.S. economy into the ground.” That is an ominous statement as it sounds to me like an opinion that the Fed is knowingly eroding the US economy. It has been widely reported in the media that rising interest rates caused by Fed actions recently caused the failures of several large U.S. banks which were either liquidated or merged into stronger banks.
The Shadowstats report also predicts a very good climate for precious metals prices and a weaker dollar, as well as continuing actions by the “Plunge Protection team” headed by Treasury Secretary Yellen to prop up market prices. The report offers this very sobering assessment of the future direction of the U.S. economy: “The Shadow Stats broad outlook in the weeks and months ahead has remained for: (1) A continuing and renewed deepening (potentially hyperinflationary) U.S. economic collapse...(emphasis added)” I suggest reading that last statement again and letting its implications sink in.
Also, in spite of the cobbled-together agreement between Biden and the House Republicans to pay U.S. debts and borrow more money, the chaotic state of U.S. federal financing is getting noticed. The rating agency, Fitch, has announced it may downgrade the rating of U.S. debt and that U.S. debt now has a negative outlook for such a downgrade (second link). When/if the “U.S. economic collapse” anticipated by Shadowstats occurs, it will be a global collapse due to the size of the U.S. economy and the fact that the U.S. dollar is the global reserve currency. It does appear that U.S. governmental and banking officials have so debauched the U.S. dollar that its demise as the global reserve currency is drawing near. In a post earlier this month, I focused on the monetary coordination within the BRICS nations who have the openly-stated goal of removing the U.S. dollar as the global reserve currency.
The words “U.S. economic collapse” are very sobering. Shadowstats does not predict when this event will occur, but its very mention argues that it could be imminent. This statement eerily echoes a biblical prophecy in Revelation 17-18 that a global economic/monetary/financial collapse will occur in the latter days of our current age just before the return of Jesus Christ who will set up a millennial government on our entire planet (Revelation 19:11-20:4). Revelation 18:11-14 has language that indicates there will be a monetary collapse as part of this prophesied financial disaster in the latter days of our age. This passage shows global merchants have all kinds of products and services to sell, but “no man buys their merchandise any more.” This certainly sounds like there are willing buyers and sellers but financial transactions can’t occur as confidence in money systems have broken down. The collapse of money in our time would be a collapse in the value of all fiat currencies for such a global economic melt-down to occur. In order to have a global collapse, it is necessary to have a digital financial system which is interlinked all over the world in real time. That the Bible predicted such an event indicates it had to be inspired by an all-powerful Creator who can intervene to make sure his prophecies get implemented.
When the financial system is rebuilt after the prophesied collapse, the book of Revelation calls the new structures the “beast” system. it will include mass surveillance and it may be cashless and all-digital. The wording of Revelation 13:14-18 states that some kind of identifying “mark” in either foreheads or hands will be needed to conduct financial transactions. The Apostle John wrote this down as a result of his witnessing the future (our time) in a vision. He had to describe high-tech realities with a very low-tech vocabulary. What he was likely trying to describe was humanity conducting business on all kinds of smart-phones using facial recognition, fingerprints, retinal scans, etc. as bio genetic authenticators to implement financial transactions. For a more comprehensive examination of what biblical prophecy reveals about this financial collapse at the end of our age, I invite you to read my report, Is “Babylon the Great” about to Fall, Ushering in a Global “Beast” System?
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