Category: Unemployment

America is Moving backwards Towards the Dark Ages

In the last podcast (See info below) we were talking about what a societal collapse would look like. While it seems like this would be something too far fetched to even remotely consider it, if that’s your viewpoint, you need to rethink that. There are places in America where this is happening right now.

On Spet 14th, 2010, http://www2.macleans.ca had an article by Luiza Ch. Savage entitled, “Third world America” and it’s something that you should read. It explains how America is moving backwards because of the economic crisis.

“What?” you say, “The recession is over, we heard it on the news. Things are getting better, we’re having a jobless recovery!” For those of you that are thinking that, I have a river to sell you in Phoenix.

In the podcast, I described a societal collapse as a breakdown and lack of basic social services and that these would be instigated by the budget crisis that is afflicting many of the cities, towns, counties and states in the USA. As the budgets for these governments continues to shrink, leaders will be forced to make cut-backs in critical services, some because they have nothing else to cut and other will do so because they refuse to cut their precious social programs.

These cut-backs will manifest themselves as less services available for residents. Some of these cut-backs are merely an inconvenience, like cutting back library hours, but others have much greater impacts. When services like police and fire fighting are reduced, there is an increased likelihood that people will suffer greater loss, to include death. Even the seemingly mundane reduction in snow removal could prevent access to critical services (think ambulances that can’t get to people that need them).

While you may not be seeing reductions in service in your community, be assured that it is happening around you, and it’s only a matter of time before you will be directly affected.

The most egregious of these is the reduction of police forces. The thin blue line is already too thin during normal times, but now that they are being cut-back, in some cases to that not much more than a skeleton staffing level, it’s only a matter of time before the criminal elements take advantage of this.

Here is a partial list of services being cut across the country:

  • Police – to the point where there are no patrols
  • Fire departments – closing down fire stations
  • Converting paved roads back to gravel
  • Trash collection
  • Snow removal
  • Filling potholes
  • Picking up litter
  • Turning off street lights
  • Bus service
  • Library hours
  • Class sizes increasing, laying off teachers
  • Cutting the school day or the school week or the school year
  • Local governments will eliminate roughly half a million employees in the next fiscal year
  • 63 per cent of localities are cutting back on public safety and 60 per cent are cutting public works
  • Privatization of government resources – this changes employee benefits (they get less, not more)

I highly recommend that you read this article and adjust your preparedness plan accordingly.

Rob

Is QE2 finally the economic collapse? – Aug. 11, 2010

Is QE2 finally the economic collapse? – Aug. 11, 2010

The Great Depression. Wall Street in 1987. Japan in 1997. Points of economic collapse are generally crystal clear in the rear-view mirror. Professional politicians in Japan have been telling stories for 20 years as to why they can prevent economic stagnation. In the US, the storytelling started in 2007. All the while, stock market and real-estate prices have repeatedly rallied to lower-highs, then collapsed again, to lower-lows.

Markets trade on expectations. Yesterday’s zig-zag in the S&P 500 was unlike most sleepy August trading days in America. That’s because the ‘government is good’ crowd leaked word that this second round of “quantitative easing,” known as QE2, was coming, and that Ben Bernanke was going to respond to our buy-and-hope begging. (The first round of quantitative easing was the Fed’s unprecedented purchase of agency debt to prop up the housing market, along with credit facilities for big banks, which began in 2008 and ended earlier this year.)

To think that we have institutionalized market expectations to this degree is downright frightening. It seems impossible but true that all rallies start and end with rumors about what Fed Chairman Ben Bernanke, a humble looking man of government, had to say at 2:15 PM EST yesterday afternoon, or any other day he makes a statement.

What the Double Dip Recession Will Look Like – Part 2

What the Double Dip Recession Will Look Like

Today’s podcast is brought to you by Audible.com – get a FREE audiobook download at audiblepodcast.com/prepcast.  There are over 75,000 titles to choose from and all of them will play on your iPod, iPhone, or mp3 player.

For listeners of the Preparedness podcast, Audible is offering a FREE audiobook download with a free 14-day trial to give you a chance to check out their service.  Or take advantage of their Audible Listener Discount Gold Membership, and get the first 3 months for half price, at only $7.49 per month for the first 3 months!

To download your free audiobook today go to audiblepodcast.com/prepcast. Again, that’s audiblepodcast.com/prepcast for your free audiobook!

This is a great article that sums up how we got to where we are currently with the economy, what people are thinking about the economy and what’s likely ahead for us.

http://finance.yahoo.com/career-work/article/110344/what-the-double-dip-recession-will-look-like

Here are the points I came away with (most of this text comes right out of the article):

(more…)

What the Double Dip Recession Will Look Like

(Listen to The Preparedness Podcast on any of your favorite audio players.  Find us in iTunes here: Preparedness Podcast iTunes Link or go to PrepCast.info for direct links to the audio files.)

This is a great article that sums up how we got to where we are currently with the economy, what people are thinking about the economy and what’s likely ahead for us.

http://finance.yahoo.com/career-work/article/110344/what-the-double-dip-recession-will-look-like

Today’s podcast is brought to you by Audible.com – get a FREE audiobook download at audiblepodcast.com/prepcast.  There are over 75,000 titles to choose from and all of them will play on your iPod, iPhone, or mp3 player.

For listeners of the Preparedness podcast, Audible is offering a FREE audiobook download with a free 14-day trial to give you a chance to check out their service.  Or take advantage of their Audible Listener Discount Gold Membership, and get the first 3 months for half price, at only $7.49 per month for the first 3 months!

To download your free audiobook today go to audiblepodcast.com/prepcast. Again, that’s audiblepodcast.com/prepcast for your free audiobook!

Here are the points I came away with (most of this text comes right out of the article):

Nearly two-thirds of Americans believe the economy has yet to hit bottom
A growing and vocal minority of economists believes that there will be a double-dip recession primarily because of the intransigence of high unemployment and the rapidly faltering housing market.
The cause of the 2008-2009 recession:
The first trigger was the drop in housing prices, which robbed many people of their primary access to capital. As that access disappeared, so did the availability of credit. Consumer buying power evaporated and business cut inventory and production. Joblessness rose. Finally, consumer confidence plunged.
Over 17% of the official unemployment numbers, or 1.4 million people, have been out of work for over 99 weeks, nearly 2 years.
they are no longer eligible to receive unemployment insurance benefits, unless congress extends benefits again – which just adds to this problem.
Unemployment claims are running well above expectations, and recently hit a six-month high.
There is nearly no jobs creation in the private sector.
Real estate prices continue to drop, particularly in the hardest hit regions such as California, Nevada, Florida and Michigan.
The federal, state and local governments are in no position to lend assistance to businesses, most of which lack access to capital.
Banks are not prepared to lend to small businesses, especially those with modest balance sheets and relatively low sales. This presents a problem for employment since companies with less than one hundred workers have traditionally been the largest creators of jobs.
The second dip of the recession that ended in 2009, according to economists and the federal government, is likely to begin within the next two quarters if certain conditions are met:
These conditions weren’t given, but it’s pretty obvious that the lack of recovery in key areas, like jobs and housing, are critical to a recovery.
  • Nearly two-thirds of Americans believe the economy has yet to hit bottom
  • A growing and vocal minority of economists believes that there will be a double-dip recession primarily because of the intransigence of high unemployment and the rapidly faltering housing market.
  • The cause of the 2008-2009 recession:
    • The first trigger was the drop in housing prices, which robbed many people of their primary access to capital. As that access disappeared, so did the availability of credit. Consumer buying power evaporated and business cut inventory and production. Joblessness rose. Finally, consumer confidence plunged.
  • Over 17% of the official unemployment numbers, or 1.4 million people, have been out of work for over 99 weeks, nearly 2 years.
    • they are no longer eligible to receive unemployment insurance benefits, unless congress extends benefits again – which just adds to this problem.
  • Unemployment claims are running well above expectations, and recently hit a six-month high.
    • There is nearly no jobs creation in the private sector.
    • Real estate prices continue to drop, particularly in the hardest hit regions such as California, Nevada, Florida and Michigan.
  • The federal, state and local governments are in no position to lend assistance to businesses, most of which lack access to capital.
  • Banks are not prepared to lend to small businesses, especially those with modest balance sheets and relatively low sales. This presents a problem for employment since companies with less than one hundred workers have traditionally been the largest creators of jobs.
  • The second dip of the recession that ended in 2009, according to economists and the federal government, is likely to begin within the next two quarters if certain conditions are met:
    • These conditions weren’t given, but it’s pretty obvious that the lack of recovery in key areas, like jobs and housing, are critical to a recovery.

(more…)

BBC News – Scottish jobs market ‘goes into reverse’

Keep watching the global news for indicators of the economy. Since all of the world’s economies are tied together, you can get advanced notice by keeping an eye on what’s happening around the world.

BBC News – Scottish jobs market ‘goes into reverse’

The slow recovery in Scotland’s jobs market has gone into reverse, according to a survey of recruitment companies.

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