Posted on 06/04/2010 8:26:50 AM PDT by blam
IT'S OFFICIAL: We're Falling Into A Double-Dip Recession
Robert Reich
Jun. 4, 2010, 10:52 AM
We’re falling into a double-dip recession.
The Labor Department reports this morning that the private sector added a measly 41,000 net new jobs in May. (The vast bulk of new jobs in May were temporary government Census workers.) But at least 100,000 new jobs are needed every month just to keep up with population growth.
In other words, the labor market continues to deteriorate.
The average length of unemployment continues to rise – now up to 34.4 weeks (up from 33 weeks in April). That’s another record.
More Americans are too discouraged to look for a job than last year at this time (1.1 million in May, an increase of 291,000 from a year earlier.)
Of the small number of jobs created by the private sector in May, many came from temporary help services.
Which is one reason why the median wage continues to drop.
Why are we having such a hard time getting free of the Great Recession? Because consumers, who constitute 70 percent of the economy, don’t have the dough. They can’t any longer treat their homes as ATMs, as they did before the Great Recession.
Businesses won’t rehire if there’s not enough demand for their goods and services.
The only reason the economy isn’t in a double-dip recession already is because of three temporary boosts: the federal stimulus (of which 75 percent has been spent), near-zero interest rates (which can’t continue much longer without igniting speculative bubbles), and replacements (consumers have had to replace worn-out cars and appliances, and businesses had to replace worn-down inventories). Oh, and, yes, all those Census workers (who will be out on their ears in a month or so).
[snip]
(Excerpt) Read more at businessinsider.com ...
bttt & bfl
speculative forces have a way of distorting things. It wasn’t clear if the $1200/oz was speculation or inflation or both. The question is, is it worth it to buy right now at around 1200/oz? That’s the million dollar question.
The answer to your question depends on how large your present position is.
Everyone should have at least 25 Oz of physical gold in their immediate possession, but the question of ‘paper’ gold depends on the potential needs you may encounter when the crash comes. Gold is going up without question, but so are food and weapons.
Sure, and everyone should have all their debts paid off and a couple hundred thousand dollars in their safety deposit box too. Realistically, not too many folks can afford to purchase, let alone indefinitely sit on, 25 oz of gold.
Gold is going up without question, but so are food and weapons.
Actually, I haven't noticed the price of weapons going up as much as one would think given the current political climate. The market is flush with assault rifles right now. As such, I think it's easy to overextend oneself in that particular commodity especially given their illiquidity Currently, they are keeping up with inflation I think but they aren't beating it yet. I don't think anything really is. It's getting harder and harder to make a buck in America imo. given the battle between inflation and deflation, it's really hard to know which way to go. I gave up trying to get rich.i'm looking to survive the next 10 years.
” I gave up trying to get rich.i’m looking to survive the next 10 years.”
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And that is exactly where gold, guns, and grub come in!
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