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The Complete & Utter Failure of Economic Statistics: How the Big Decisions Are Based on Fraudulent and Nonsensical Models

22 May 2025

INTRODUCTION: HOW TO TRADE INSOLVENTLY FOR 25 YEARS AND STILL BE CALLED A “SUCCESSFUL ECONOMY”

Only in the hallucinogenic fantasyland of modern economics can a nation rack up $40 trillion of debt in a generation, produce zero real wage growth, have collapsing infrastructure, falling life expectancy, and still be patted on the back for a “robust economy.”

This isn’t the result of resilience. It’s not complexity. It’s not brilliance.
It’s fraud.
A self-sabotaging, sophisticated, slow-motion, legally sanctioned fraud… hidden under layers upon layers of academic jargon and statistical masturbation.

Let us be perfectly clear:
The ability for the United States to trade insolvently for 25 years — spending far more than it earns, borrowing trillions, and papering over deficits with fake money — is not a sign of economic genius. It’s the outcome of a crooked system that due to its size, complexity and chains of command appears robust, but in reality is systemically fragile. No singular human nor entity is powerful enough to overhaul it – not the Fed, not congress, not the White House. And it is political suicide (or homicide) for anyone who dares to try. The American bureaucratic machine has become so gargantuan and self-servicing that the only thing that can stop it is critical mass annihilation.

What keeps the charade alive? So-called Policy Tools.
GDP. CPI. Unemployment metrics. Debt-to-GDP ratios. “Core” inflation.
All the acronyms and alphabet soup cooked up in Ivy League faculties and central banks — where no one has ever run a business, hired an employee, or seen a real balance sheet in their life — are wielded like religious scripture, immune to criticism and blind to reality.

And if you think that’s hyperbole, let me ask you one question:

How can a government possibly spend $1.5 trillion a year (20% of the federal budget) on a bloated, unproductive bureaucratic machine that adds zero value to rest of society… and just $146 billion (2% of the budget) on infrastructure… as its cities collapse into third-world dysfunction?

The answer lies in a system of economic statistics so corrupted, so absurd, so utterly disconnected from real life, that they don’t just distort the truth — they erase it.

So let’s tear it all down — starting with the most abused and misunderstood metric of all.

GDP: THE GROSSLY DECEPTIVE PRODUCT OF THE ACADEMIC ELITES

Gross Domestic Product (GDP) is supposedly the gold standard of economic measurement — the single number that tells us whether an economy is “growing” or “shrinking.”
It’s the cornerstone of every budget, forecast, and central bank decision on Earth.

But GDP isn’t a measure of wealth, health, or prosperity. It doesn’t even come close to accurately measuring the growth (or decay) of a nation’s living standards.
It’s a Frankenstein metric, a spreadsheet fantasy that’s just as happy to count a missile strike on the over side of the world, a forced closure of a 150 year old coal fire plant, or a bureaucratic black hole as “economic activity” as it is to count innovation, construction or agriculture.

GDP = C + I + G + (X – M)

Here’s the scam:

But let’s focus on that “G” — because that’s where the rot begins.

WHEN GOVERNMENT SPENDING IS COUNTED AS “PRODUCTIVE” OUTPUT

Imagine running a construction company where you pay just one builder to build and ten people to monitor, judge, and explore methods to prosecute the builder.  
That’s GDP logic.

Most government spending is not productive. It’s administrative. It’s redistributive. It’s regulatory. And sometimes it’s downright hostile.

Yet under GDP accounting, the US federal government can borrow $1 trillion, spend it on administrators, compliance officers, DEI consultants, and unaccountable NGOs, and voila! GDP goes up.

Here’s the uncomfortable truth:
If government spending actually added to wealth in a meaningful way, Venezuela would be rich.

But let’s quantify it:

📊 In 2023:

That’s over 10x more on deep state bureaucracy than on tangible, generationally beneficial assets.

Yet GDP says: “The economy is growing!”

No, it’s not. It’s inflating. It’s decaying. It’s bloating.
Policymakers measure movement using meaningless numbers on spreadsheets — not real value.

And the sleight of hand doesn’t end there.

CPI: THE ART OF GASLIGHTING THE PUBLIC INTO BELIEVING THE COST OF LIVING ISN’T RISING

Enter CPI, the Consumer Price Index — supposedly the yardstick for measuring inflation, which is used to calculate real GDP (i.e. growth after inflation).

“Real GDP” = Nominal GDP – CPI

But here’s the scam:

When you understate inflation, you overstate GDP growth.

And CPI is a rigged game, plain and simple.

Instead of tracking actual prices people pay, the government relies on smoke-and-mirror techniques like:

🏚️ Owner’s Equivalent Rent (OER)

Instead of measuring actual rent, CPI uses a theoretical estimate:

“How much would you rent your house for if you didn’t live in it?”

That’s how they report rent increases of 6%
While actual rents are up 40% in most US cities over the last few years.

🧮 Hedonic Adjustments

If your new laptop is faster than the old one, the government assumes you’re getting more value — so the price increase doesn’t count.

New car prices up 20%?
No problem — the safety features are better. Let’s call it 2%.

📦 Substitution Bias

If steak gets too expensive and you switch to canned beans, they say you’re “not worse off” because you adapted — so inflation is “contained.”

This isn’t measurement. It’s economic gaslighting.

If inflation were measured honestly, real GDP growth would have been negative for at least 20 years.  
And the so-called “economic recovery” would be revealed as a bona fide economic depression.

THE BUREAUCRATIC BLACK HOLE: $1.5 TRILLION AND NOTHING TO SHOW FOR IT

So let’s circle back to the real villain in this story: the bureaucratic state — the slow, bloated Leviathan that consumes wealth, throttles innovation, and metastasises into every corner of daily life.

Here’s what US tax dollars really buy:

Cost Category Annual Cost Estimate Federal salaries & benefits $300+ billion   Office leases, property maintenance $70+ billion   IT systems, data centres $100+ billion   Procurement waste & contractor fraud $200+ billion   Legal/admin overhead $80+ billion   Redundant departments & programs $100+ billion   Black budget (CIA, NSA, etc.) $100+ billion   NGO laundering, front ops, and other $600+ billion  

Total: $1.5+ trillion — every year.

And how much of that delivers tangible value to the rest of society?
Almost none.

If the US federal bureaucracy were a private enterprise, it would have been bankrupted, restructured, and sold for scrap decades ago. If an individual or small business acted in this way, not only would they be thrown out onto the streets, but they’d also likely be locked up in prison.

But instead, the deep state just grows in a self-defeating death spiral… Because in GDP math: bureaucratic wastage = economic prosperity.

China’s Infrastructure Investment

By contrast, China has consistently prioritised infrastructure as a cornerstone of its economic strategy. In recent years, the nation has undertaken substantial investments in various infrastructure sectors while actively repressing bureaucratic overload. Since 2019 China has displayed the opposite trend to Western governments, implementing frugality campaigns to address fiscal pressures rather than expanding them.

📊 Comparative Overview

Category China United States Infrastructure Spending $1.0 trillion $146 billion Administrative Spending $200 billion $1.5 trillion

THE LIE THAT PROTECTS THE SYSTEM

Here’s the punchline:

Despite all this waste, inefficiency, and systemic decay…
the official data says we’re doing great.

And because the statistics are “healthy,” the system justifies:

But make no mistake — this is not prosperity.
It’s managed decline, camouflaged by statistics, and weaponised through narrative. Never before in history have households been so anxious over the cost of living, desperately chasing a rapidly depreciating dollar, while their cities crumble and the elites just get richer.

The economy is not a spreadsheet.
It’s your life. Your job. Your rent. Your groceries. Your energy bill. Your ability to save. Your freedom to own and build and create.

And when economic indicators are manipulated, distorted, or outright falsified — the decisions based on them are guaranteed to be disastrous.

THE GRAND ILLUSION

A nation doesn’t collapse when its numbers go red.
It collapses when its numbers are fake.

GDP is fake.
CPI is fake.
“Growth” is fake.

What we’re really experiencing is the intentional debasement of currency, erosion of productivity, and dilution of national sovereignty, hidden beneath the illusion of economic success.

Think is problem is local to the United States? Ha! Think again. The overwhelming majority of the West has been operating this way for just as long. On a percentage basis, Australia is even worse and so is Canada and the United Kingdom – all of whom intend to address the problem with commitments to even higher levels of budget deficits, debt expansion, unproductive administration and market meddling.

The deep state bureaucracy is not a fluke — it’s a feature.
A self-serving, ever-expanding apparatus that feeds off the very collapse it creates.

And the statistics? They’re just the fairy tale we tell ourselves to avoid admitting that the system is broken — and has been for a very, very long time.

So the next time you hear a government official say:

“The economy is doing better than ever!”

Just smile and ask:

“Can you give me one example of an actual living standard that has improved?”

Because if you trust their numbers, you’re already playing their game.

And they never lose their own game.

Some metrics are not bastardised, and we see evidence of this in the zombification of our cities, and in the silent suffering of our friends, family and colleagues.

  1. Household savings: Down to 1% in Australia. Yes, the average Australian is currently spending 99% of their pay to feed, clothe and house themselves. This ratio is 3% in the US, and plummeting. Both are forecast to fall into negative territory, meaning the average Aussie and American, will be soon surviving off consumer credit they will never be able to repay.
  2. Wealth gap: The net wealth of the bottom 90% has flatlined while the prices of everything have skyrocketed. The top 90-99% have fared okay, while the top 1% have surged ahead, increasing their comparative share of the overall wealth 10x over the last 25 years. Modern economics feeds into the technocratic corporatocracy – these are “winner take all” power structures.
  3. Life expectancies: Have suddenly fallen for the first time in 100 years across the West. The spike in excess deaths are not from coronavirus but from preventable cardiovascular diseases, untreated cancers, voluntary substance abuse, and deaths of despair. Research indicates an understandably strong correlation between financial, physical & mental health.
  4. Literacy & numeracy rates: Plummeting across the West and rising in emerging economies such as India & China.
  5. Mental health: Deteriorating across the West, particularly in children, teens and young adults. Financial difficulties and mental health disorders tend to come as a package deal, particularly in young fathers who are resorting to crime, drugs, alcohol, gambling and suicide at alarming rates.

THE SOLUTION

Do not depend on the government for anything. Not their policies. Not their handouts. Resist their big lies. Understand and be clear on the role the government. We no longer have partisan representation; we have a uni-party – left & right wings of the same bird. We no longer face socialism nor capitalism but the worst of both. Megacorps no longer protect us from the state but work with the state to extract your data and money. States no longer protect us from megacorps but work with the megacorps to shape the political discourse. Regain your authority as a citizen, a parent, a teacher, an employer. The next 25 years will not be like the last. Things will get worse before they get better.  

For more information and strategies to prevail in the coming crisis: Check out my latest book CHAOS AWAITS: Strategies for Dealing with the End of the American Empire

Currently available on Amazon in Paperback and Kindle.

The audiobook will be available on Audible early June.