- Unemployment is still around 8.2 percent
- Demand is what creates jobs around the world
- U.S. businesses are not anticipating demand
- Here’s our predictions for this jobs market that effects the world
- Unemployment will go well into double digits in the U.S.
- Major banks around the world will be in the news as they start collapsing
There’s one thing in the world that every country is effected by and that’s jobs. Last week’s U.S. jobs report was very disappointing. Unemployment is still around 8.2 percent – not much changed all year. It’s 11 percent in the European Union. Reports state that there’s going to be a worldwide slowdown in growth – this is to make you think that everywhere in the world things are bad, but that’s not true. It’s designed to make you feel better about the current situation you live in. Chief economists are saying things like there’s downside risk and it’s going to effect everybody, every country… well, not really – only countries without growth and jobs.
The U.S. is now very far down the list of countries with good GDP growth percentages, in fact it’s number 159 – 159 countries have a better growth rate percentage for GDP than the U.S. Many countries in Central and South America and Asia have 3 or 4 times the GDP growth rate of the U.S. These are also the countries where American jobs went. They have demand in their economies and are world competitive in costs. Demand is what creates jobs around the world.
U.S. businesses are not anticipating demand, therefore no hiring. U.S. businesses can’t get loans, therefore no hiring. U.S. businesses are worried about the economy, the elections, higher taxes, higher costs for everything especially health care and are not hiring – they are waiting.
Here’s our predictions for this jobs market that effects the world. In 2012 going into 2013, U.S. unemployment will continue to worsen with companies announcing thousands, or tens of thousands of workers getting laid-off. With the companies’ stocks going up when they announce lay-offs. Laying people off is one of the last areas left to cut costs; maybe even the only one. Cutting costs is how they’ll show profits and artificially inflate the stock price temporarily.
Unemployment will go well into double digits in the U.S. with younger workers under 30 years old being the most effected. Many of these workers are educated with college degrees and student loan debt and will be unemployed or under-employed. This group could see 40 to 50 percent unemployment as older workers don’t retire and jobs are not being created.
Major banks around the world will be in the news as they start collapsing. Their assets will be picked clean by their vulture competitors. Following will come the collapse of the European banking system, one bank at a time followed by a series of governmental collapses in Europe. These collapses will be over sovereign debt that’s crushing the countries as derivatives exposures bring everything crashing down. You will see a series of defaults, collapses and “rescue plans” aimed at saving the financial system – these will start this year and go on into 2013. When you see the first major bank collapse you will know that the financial system collapse is picking up speed.
ANSWER: The strategy where companies lay workers off to show artificial profits only works for a short time. What will be their next strategy? QUESTION: So, how will small businesses survive under these oppressive political decisions?
QUESTION: How long will the artificial inflation of the stock market hold up due to companies cutting costs?
ANSWER: Costs are just one thing as investors also look at confidence. Confidence is even more detrimental to the markets than unemployment. A lean company can make profits, but a company or economy where there’s no confidence can’t do much of anything.
QUESTION: What do you mean by no confidence?
ANSWER: Investors lack of confidence putting money into the market and consumers lack of confidence where they are not buying anything they don’t need.
QUESTION: When will this become a problem?
ANSWER: Going into and after the elections on into 2013. The toll that will be taken during 2013 with the first governmental and banking collapses will continue into 2014.
QUESTION: What should people look for regarding the beginning of this financial collapse?
ANSWER: Some banks will get more bailouts, others will get nationalized by their country; other will cease to exist and the financial system will have to be rebuilt from the ground up with new rules, new controls, and restrictions on risky betting behavior with trillions of leveraged dollars.
QUESTION: How long will this take?
ANSWER: Over an 18 to 24 month period of time.
QUESTION: Recap the most important points in your message today?
ANSWER: Our message is that you are being distracted by reports from “experts” to keep you from seeing how bad things really are and will get.
QUESTION: Why is this information timely?
ANSWER: This information is timely because going into elections the political parties want you to think that’s it’s really not so bad and whoever becomes President can fix it.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: You should consider getting all your money out of banks and out of any type of retirement or pension accounts or insurance policies and things like CD’s, stock accounts, annuities and retain it yourself. If you can’t see it, feel it and hold it you don’t own it.
COMMENTARY: The financial system is heading for another 2008 event except this time it is going to be a much bigger event. The only thing that will postpone this inevitable event will be the U.S. Presidential elections. After that nothing will be able to hold it back or stop it. It is time for you to take action and get the final preparations in order to safeguard your assets.