The Dangers of a “Jobless Recovery”
So often do we hear that the US economy is going through a “jobless recovery” or one in which prices stabilize and the economic fundamentals (GDP, trade balance) begin to recovery. The simple fact of the matter, however, is that there is no recovery without jobs, and a jobless recovery is not a recovery at all.
The Economic Indicators
As we use them today, economic indicators are very easy to manipulate, by large infusions of cash into the system. GDP, the cornerstone of economic indicators relies on faulty analysis, that is, if the GDP grows, then the economy must be growing. This is pure economic fallacy, by merely printing more money, the GDP of the economy will seemingly rise, while the standard of living and incomes are virtually unchanged.
Gross Domestic Product Manipulation
The GDP or the value of the economy as a whole is expressed in dollars. This amount is supposedly the “worth” of all goods and services produced in one year. Now lets assume that in one year, we double the amount of money in circulation. It would appear, to the naked eye, that the value of the economy has doubled, even though the same number of goods and services are being produced. In raw economic terms, the economic production for the US has doubled, because the value of those goods and services has doubled. This is what a “jobless” recovery means. Its a purely virtual recovery.
How to invest for a jobless recovery
Being invested in SOMETHING, ANYTHING will make you money in a jobless recovery. Because the emphasis is placed on inflating your way to recovery, the price of everything will go up. During these times it is recommended to have as much of your worth invested in any hard asset, as the price will invariably go up. And why wouldn’t it? Remember, we spent $700 billion to bail out banks, $878 billion to “stimulate the economy” and DC isn’t done just yet. The $700 in bank bailouts has been spent, but to date, more than 90% of the stimulus cash is left unspent.
Its Starting, Now
We’re running at 90 mph straight into a brick wall known as hyperinflation. The bank bailout was enough to fill in the rut in our GDP, and the stimulus will be icing on the cake. You must begin to prepare for this jobless recovery, we’re going to shed jobs, but the value of everything, stocks, houses, a toothpick, is set to explode due to inflationary measures. Get ready, hold on, and invest correctly, because it will surely be the money making possibility of a lifetime.
Were you as shocked as i was about the drop in unemployment? I can’t understand how a drop in 275,000 jobs equates to a drop in unemployment. I’m highly skeptical of the numbers reported.