10.2% = 17.6% = 20% Who’s Paying the Bills?
Tuesday, December 1st, 2009By now you’ve heard that our national unemployment rate is 10.2 and rising. Or that the under-employment rate (those of us working in jobs or careers below our qualifications and aspirations) is a reported 17.6%; and that those added for being significantly under employed is 20% or more, conservatively. Even wrapped neatly in their government crunched data baskets, you know, suitable for family viewing; these numbers are incredibly scary.
By themselves, these percentages are worrisome enough, toss in the multiplier effect and corollary powers which will naturally accompany employment stats and you get a truer picture of malignancy we are facing.
It gets worse. Over the past year, HALF of all workers (47%) said they left the work force and retired earlier than planned, earlier than anticipated; and most not on their own volition, according to the Employee Benefit Research Institute. Only 31% of workers surveyed said that in the wake of the financial crisis, they still plan to retire on their original schedule.
While the sacrosanct “80% of pre-retirement income” ratio test remains a prudent measuring stick for “safe retirement” the current economic times are forcing folks to re-think the veracity of this percentage with many (most surveyed) expecting a lesser amount; in fact a much lesser amount.
Here are the dominant kickers; 1. Only 26% of workers age 55 plus have nest eggs totaling $250,000 or more and, 2. A whopping g43% of households age 65-74 have housing debt. Is it just us or do these and many more comparable type statistics make the hair on your neck tingle? Who’s kidding who? When almost one-half; 50% of all surveyed workers state they will be PERMANANTLY leaving the work force “earlier than anticipated”, the tea leaves are screaming for HELP!
So, is our real under-employment rate far higher than 20%? Yes. It’s not 50% but it’s a lot closer to this than you might think; probably the high 20s or 30s. Correct. Between part-time, “under”, early departures and woefully insecure of future employment, we’ve definitely got a serious production and deficit paying problem. Mix this all in with almost $2 trillion budget deficit already, foreign wars, a weakening dollar, and all time record prices of gold, platinum and precious metals, commodities; and the inflation plus tax increase picture is ominous .
Two separate but very distinct events helped make up our mind to plead that our readers become even more financially cautious. First is John Paulson’s decision to buy gold and sell (bet against) the dollar and other major currencies Paulson’s the genius that made the single largest trading profit in history ($20 billion) by betting on a huge fall in home prices and the meltdown of subprime mortgage paper at just the perfect time. Then he short sold financial institution stocks while betting against more CDOs (credit default obligations); basically timeing the fall of everything at once.
Secondly is the piling on by numerous central banks of many nations who are liquidating dollars, Euros and US Treasuries for actual gold bullion; on average a billion dollars per day. What do they expect that we should all be cognizant of? Message? Stay short and stay liquid. Consider owning gold and short-term government paper.
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