For all those mainstream economists who suggested that the fall from 10.2% to 10% in unemployment was a good sign, I have some bad news from the frontline. My firm, Kmart, although not explicitely firing anybody (yet), have cut hours for the majority of employees to eight to ten hours a week. I got four (a sign that I am getting fired, although I have been with them for over a year). The unemployment rate is about to jump.
As students of sound economics, I think we understand what is about to unfold due to the central bank, deficit spending, and the implementation of socialism in U.S. I am doing my best to keep 2010 from “arriving”, but I don’t think I will be successful.
Best of luck to you.
That’s exactly what I predicted. Unemployment is bound to go up for at least 12 months. In the meantime we’ll be bombarded daily by data about GDP growth and consumers’ goods showing “a strong recovery”. I’ve predicted 2010 will see a GDP growth of more than 3% in the US and more than 2% in the Euro zone but I may have been too conservative. Why not over 5% or even 10% for what that matters? People have to be encouraged, even forced, to spend their way to prosperity. Most of all people have to be stopped from questioning the solidity of the present economic system. That’s 1984-style propaganda. Problem is people without a job or about to lose a job will look at the newspaper and think “where’s my recovery”, “if it’s all going so well where’s my job?”. There will be growing disparity between real-world economic conditions and paper economy. And that’s what will start it all.