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The Phony Ten-to-One Headlines: Ignore Them.

Written by Gary North on August 27, 2013

The news media suffers from hyper-inflation. We can see it in the headlines.

Here’s a recent one: China Will Invest $1 Trillion Globally; How Much Will U.S. Get? But when we read the article, we are told this:

According to author Orville Schell—who has lived in China off and on for more than 40 years—China will invest more than $1 trillion globally over the next decade. That begs the question: Will the U.S. get its share?

I see. A decade. Dividing $1 trillion by ten years, we get $100 billion a year. If the U.S. economy keeps plugging along with no growth, that will be $166 trillion.

The financial media are now addicted to these nutty headlines. The headline writers are told by their editors to multiply everything by ten to one.

China invested $5 billion in the U.S. economy last year—far less than the $51 billion that the U.S. invested directly in China. It currently owns about $28 billion worth of American assets—in companies and real estate, according to the Rhodium Group. And that number is expected to grow.

I see. $28 billion. Total. Compared to what? We read on Wikipedia.

As of the first quarter of 2010, domestic financial assets totaled $131 trillion and domestic financial liabilities $106 trillion. Tangible assets in 2008 (such as real estate and equipment) for selected sectors totaled an additional $56.3 trillion.

Until you read the article to see if the ten-to-one con job is being used, ignore all headlines with big dollars listed. This is especially true of reports on cuts in federal spending.

Continue Reading on finance.yahoo.com

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One thought on “The Phony Ten-to-One Headlines: Ignore Them.

  1. Texas Chris says:

    Our elected officials do the same thing: "Save $1 trillion over 10 years".

    Liers gonna lie, statists gonna state.