The Labor Department’s Unemployment Statistics are crucial. The Federal Reserve, which has been charged by Congress with trying to keep both inflation and unemployment under control, reacts to official unemployment statistics in setting its policies, potentially flooding the market with dollars, creating inflation and reducing the value of money, or pushing interest rates higher. Here is a story by John Crudele in the New York Post about some employees in the Census Bureau faking this data. Even worse, the story reports an increase in this statistical fudging ahead of the 2012 election, making it look as if the economy were improving more than it really was. If true, this is an enormous scandal.