You can tell when a Ponzi scheme is approaching its collapse by the number of increased smoke and mirrors needed to cover up the counterfeit foundation of the scheme.
The U.S. government, who already grossly disfigures the real numbers for GDP, unemployment and inflation, is constantly having to twist reality to keep their scheme afloat.
The government recently reported that unemployment numbers reached the lowest point in nearly two years at 8.9%, "sparking optimism" in the establishment media. Many analysts point to two months in a row of "job growth" as evidence that the U.S. is well on its way to recovery and it should be good news for job seekers.
We all know the inherent problems with the official unemployment number, as it never tells the full story. But assuming hiring has gotten better, these lower wage jobs will surely affect consumer spending in the near and long term. Additionally, John Challenger, an executive with an outplacement firm, claimed his optimism is tempered because, "Certainly the specter of rising gas prices could impact employers' staffing decisions over the next six months."
Which brings us to the phony number in the theater to hide the Ponzi scheme that I want to focus on: inflation. The 12-month inflation rate as of January 2011, was 1.6% according to the official Consumer Price Index, or only 1% when you remove food and energy. The report stated:
