The much fudged and tweaked U3 Unemployment Rate purposefully ignores underemployed and work force dropouts.
The U6 currently at 16.5% kinda reflects the underemployed and work force dropouts but is fudged as well.
The ShadowStats SGS: “The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994.“ hovers near 21.6%.
On January 1, 2011 look for the real numbers to start to skyrocket! On that day taxes go thru the roof.
Six Months to Go Until The Largest Tax Hikes in History:
Returning Taxes:
- Personal income tax rates will rise.
- Higher taxes on marriage and family.
- The return of the Death Tax.
- Higher tax rates on savers and investors.
New Taxes:
- The “Medicine Cabinet Tax”
- The “Special Needs Kids Tax”
- The HSA Withdrawal Tax Hike.
Increasing Taxes:
- The AMT will ensnare over 28 million families, up from 4 million last year.
- Small business expensing will be slashed and 50% expensing will disappear.
—And even more!
The financial and investment sector will peak in December and fall off the cliff in January.
Business will start spiraling downward taking millions more jobs out of the mix.
Deflation and Inflation will hit us big time further compounding the problems.
Inflation is currently reported as ~2.0% but really is ~9.5%:
“The CPI chart on the home page reflects our estimate of inflation for today as if it were calculated the same way it was in 1990. The CPI on the Alternate Data Series tab here reflects the CPI as if it were calculated using the methodologies in place in 1980.“
The tax revenues of the governments(City, Federal and State) will plunge further while the “Welfare State” costs will explode! Thus the systems will start to implode.
By next spring look for “real unemployment” to be ~30%!
Malcolm T. Hedges
http://malcolmhedges.com/
1) http://www.shadowstats.com/alternate_data/unemployment-charts
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