by Pater Tenebrarum, Acting-Man.com:
How to Increase the Economy’s Size by Fiat
The US government has hit on a new solution to kick Carmen Reinhart and Kenneth Rogoff while they’re down. Since their recently disputed paper makes so much of public debt-to-GDP ratios, one way to improve the situation is obviously to increase the size of GDP, ceteris paribus. But how do you accomplish that in an economy that requires the addition of a lot more than a dollar in new debt to produce a dollar of ‘growth’?
Simple, you just make stuff up. And so it has been decided to ‘grow’ the size of the US GDP overnight by 3% by adding new items to it, some of which are so diffuse in their nature that they will be ideally suited to manipulating henceforth what is already the most manipulated economic statistic.
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