November 22, 2013
By Bob Brooks
"I think it would be impossible to really manipulate the numbers," said Keith Hall, who served from 2008 to 2012 as commissioner of the independent statistical agency, which produces the report. – This was a statement made after the dramatic drop in the unemployment rate prior to the elections in 2012.
This should have been one of the big news stories of the week. Unfortunately, it received very little attention. The unemployment rate is an extremely important economic statistic that a number of decisions are based off of. Unfortunately, this is also one of the most manipulated numbers of all economic indicators.
I have been writing about this for years. It is just common sense. True unemployment has been in the worst shape since the Great Depression. Yet, the unemployment rate would continue to fall. It never reflected reality.
In a New York Post article it was reported:
"In the home stretch of the 2012 presidential campaign, from August to September, the unemployment rate fell sharply — raising eyebrows from Wall Street to Washington.
The decline — from 8.1 percent in August to 7.8 percent in September — might not have been all it seemed. The numbers, according to a reliable source, were manipulated.
Just two years before the presidential election, the Census Bureau had caught an employee fabricating data that went into the unemployment report.
And a knowledgeable source says the deception went beyond that one employee — that it escalated at the time President Obama was seeking reelection in 2012 and continues today.
The employee said in an interview this past weekend that he was told to make up information by higher-ups at Census."
I remember in October 2012 writing the following:
"With the worst employment situation we have had since the great depression and the economy creating an anemic 114,000 jobs, the unemployment rate fell from 8.1% to 7.8% just in time for the elections."
If you will recall, it was important to get the rate down below 8% before election time, and apparently all it took was some funny numbers to make that happen.
This should be no surprise to anyone because the government has been in the economic manipulation game for years. They change formulas and methodologies just to suit their needs. This just goes to confirm that there is nothing free about our free market system with all of this manipulation occurring.
Incidentally, www.shadowstats.com who takes government information and creates real numbers, says are unemployment rate should be 23.5%.
By making up survey results — and, essentially, creating people out of thin air and giving them jobs — these actions could have lowered the jobless rate.
Buckmon said he filled out surveys for people he couldn't reach by phone, or who didn't answer their doors.
Census never publicly disclosed the falsification. Nor did it inform Labor that its data was tainted.
Only four instances of falsification were looked into, while 14 were reported.
I've been suspicious of the Census Bureau for a long time.
During the 2010 Census report — an enormous and costly survey of the entire country that goes on for a full year — I suspected (and wrote in a number of columns) that Census was inexplicably hiring and firing temporary workers.
They have been manipulating numbers for years - this should be no surprise - however, this points to one thing - this is the new era of investing, the new normal where we don't have free markets - we have manipulated markets.