Here’s a guy who shreds shadow stats in a different way showing it equally as ridiculous. It’s not in a tweet though so not sure if crazy can digest it or not.
Update: Welcome Hogvilleians! You’re totally crazy of course. Simply read the entire article, and you’ll see why. I didn’t just choose one item and say “See inflation doe…
traderscrucibledotcom1.wordpress.com
“We know the Average yield in the 5 year over the last decade was 3.4%. A rough estimate of shadow stats inflation would be 9% per year since the year 2000.
Real Yield = 3.4% – 9.0% =
-5.6%
To believe that Shadow Stats is true, we must believe investors have been paying 5.6% to lend to the treasury for an entire decade! Now, I support a bit looser government purse than most people. But by these standards, I might as well be Von Mises! These people who are giving the U.S. government nearly 6% per year are paying the U.S. government to issue debt.
These people paid 5.6% per year to lend to the U.S. government in real terms. I don’t buy it.
There is also another horrific conclusion from this exercise. If we take Shadow stats seriously, the U.S. Government
earns 5.6% per year from borrowing money. Yes, according to John Williams, the government earns massive returns by borrowing!
Go through the math yourself, and borrow money for 10 years at 3% when inflation is at 100%. Use these numbers, because it will be hugely clear: Borrowing at a lower rate than the inflation rate is a path to wealth. You’ll be easily able to pay back the debt with far cheaper money in the future. A few hours of work at a Starbucks and you’ll pay off a massive debt. You’ll make a tidy sum just from borrowing.”
Man, this is fun.