Japan Data Scandal: Tokyo Admits 40% Of Its Economic Data Is “Fake News”

Japan Data Scandal: Tokyo Admits 40% Of Its Economic Data Is “Fake News”, by Tyler Durden.

According to an Internal Affairs Ministry report released late Thursday, nearly half of Japan’s key economic government statistics need to be reviewed with 22 discrete statistics, or roughly 40% of the 56 key government economic releases, turning out to be “fake news” and in need to be corrected. …

Meanwhile, adding insult to injury, Japan’s latest scandal means that whereas everyone had long been making fun of China’s economic data for being manipulated, fabricated and goalseeked, Japan’s own “data” was far, far worse.

Meanwhile, just to demonstrate how much of a circular farce “data” in developed countries has become, after Japan’s labor ministry admitted it published faulty wage data, 79% of respondents in a Nikkei poll taken between Friday and Sunday said they now can’t trust government statistics, while 14% said they can.

Inflation and unemployment statistics in the West have long been misleading, ever since the stagflation of the 1970s. One of the ways that politicians and bureaucrats “solved” stagflation was to measure it differently. In Australia for instance, working more than one hour per week now disqualifies you from being “unemployed” — it used to mean you didn’t have a full time job.

A myriad of changes were made to how inflation is measured, leaving the CPI little more than a tool for convincing everyone there is hardly any. Meanwhile the banks can get on with ramping up money supply, creating the illusion of prosperity. In Australia for instance, the broad money supply grew at 23% in 2007 yet the CPI registered just 2%. Throughout the West, money supply growth for the last three decades has been around 10%, rarely dropping below 5%, but the CPI is always around 2%.