The fear of sudden unemployment threatens nearly every American in today’s fragile economy and is a possibility that should be considered when preparing for future disasters.
Preparing for the hypothetical job loss of you or your spouse is one of the most important sets of plans you can make. Because let’s face it, the probability of losing your job is a lot higher than the chance of apocalypse.
If you are one of the few people who actually pay attention to the global economy, then you probably already know that large-scale job loss is a real and likely possibility. As businesses declare bankruptcy and others struggle to remain afloat, will you or your partner be one of the countless unfortunates left unemployed?
Money manager Michael Pento’s predictions for the future are more than worrisome: “If you look at any of the economic data coming out, it screams recession. It will be one of the worst recessions since 2008 and 1928 – combined.”
Pento warns of an imminent global depression when he says: “Unfortunately, I think that’s exactly where we are headed. It’s not my opinion…It’s the entire view of all global markets. China is 45% down. There’s a bear market in Europe. There’s a bear market in Japan. There is a bear market in most of the United States.”
“It’s happening. It’s happening now. This is not your garden variety recession. You have impotent central bankers and impotent sovereign nations. How many more empty cities in China going to build without destroying their currency?”
“There are going to be global sovereign defaults, and those defaults are going to take the form of defaults through monetization and inflation. That is where we are headed…It’s going to be a devastating, metastasizing global depression. It’s on its way.”
Consider the following:
• The Baltic Dry Index just hit a record low
• Global trade is slowing down at an alarming rate
• Railroad traffic is slowing
• Sprint recently laid off 8% of its employees
• GoPro recently laid of 7% of its employees
• Wal-Mart recently announced it would be closing over 200 stores nationwide
The truth is painfully obvious. And yet a giant portion of the population is putting faith in the government, pretending not to notice, or downright oblivious.
“My thinking is that this is the big bear market that will correct the entire rise from the 1932 low,” says Richard Russell. “It’s been many generations since Americans have seen hard times. I rest on the old axiom prepare for the worst, and hope for the best.”
“The unbelievable amount of debt that is currently being created will create monster inflation that will destroy every currency,” he adds.
What to Expect
1. Don’t rely on unemployment compensation. This money is nothing compared to your previous wage and won’t last forever.
2. Prepare to lose health coverage. While you may qualify for a temporary “COBRA” health plan, it won’t last long it and won’t cover much.
3. Know that finding a new job will be hard, especially if you are middle-aged or older.
How to Prepare
Start saving as much cash as possible. Every little bit helps. Set up a savings/retirement plan if you don’t have one already. Cut the cost of buying food with a small garden. Walk, bike, or carpool to work to save money on gas. There are lots of tricks like this that can help you save a considerable amount of money in the long run.
If you have a good health insurance plan and need work done, do it now (vision, dental, etc.). Purchase extra food, water, and supplies and keep them in a safe, dry place. Think about your current skill set and start to develop additional skills that may be valuable to other employers.
Establish as many contacts as possible.
If the depression turns into a real SHTF scenario, you’ll also need to consider where you and your family could go if forced to leave your current residence.
In the words of Bill Holter of jsmineset.com: “The situation in derivatives is one giant mountain of dynamite waiting for a spark.”