Numbers Always Tell The Real Story

Right now the forces that be are still trying to paint a bright picture of the economy. Things like wages rising (well of course inflation is skyrocketing!), unemployment is back to where it was before the pandemic hit (well it wasn't the best then either) but what's really happening right now is a massive layoff. One that's not catching headlines and one that may very well skyrocket crypto yet again as developers move to crypto jobs again and not towards mega corps who once again and screwing them over after a year or less!

The Delay Factor

What we all need to realize is there's a delay factor in everything that happens in the economy. The shut downs and buy outs took a year or two before they set in and we saw the results of that in fact we are still seeing it.

What happened next was the opening of the economy which resulted in a major worker shortage. Because of that minimum wages were increased to bring people back which would have also helped fuel inflation along with many other factors.

What we saw from that point was a hot economy that was starting to reignite. What happened next was the realization that everything was not well and companies over hired. We are now seeing the results of that. Nearly ever large company is laying off people like crazy. Hundreds and many times thousands are laid off and with that the average rate seems to be a hearty 10% or worse. Run that over a period of time and the next unemployment number that comes out and the next after are most likely going to start spelling a MUCH different picture of the economy.

Spending

While layoffs are happening right now companies are still reporting higher profits and spending has actully increased. Again remember delayed factors.. We also see that Mastercard reported their highest earnings yet. Higher debt, people losing jobs... Delayed effect not looking so great there.

Higher spending is actully a direct result of inflation. Every day items cost more thus you spend more. However when you take inflation of gas and compare it to spending money on gas it's actully down 8% in reality that means less spending is happening which delayed effect will cause more downsizing and less and less demand for items.

The Future

We will most likely see unemployment spike and yes the economy is in a recession. Unemployment numbers at repeated times like this in the past have spiked to 10% in and some rare cases 15%-20%

In general be prepared is all I'm going to say. While everyone is trying to make things sound all ok they simply are not and this cover up is going to implode big time instead of dealing with the matter now because of elections and bs like that.

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