The Unemployment Tsunami


 As we enter the holiday season, unbeknownst to most people, an economic crisis is right around the corner. Although we shouldn’t stress at all about the unfolding economic disaster, rather we should be prepared so that when we experience hardship, we are not completely helpless. One key lesson to know today is that mass layoffs are probably going to strike the global economies within the next 6 months. Many people today can ignore the unfolding economic disaster because they wouldn’t really know how bad the economy is unless they are actively paying attention to economic data, trends, and forecasts. People don’t have time for that research. People just take the word of the propaganda mainstream media. People today have the luxury to ignore the economic fever because they are employed and as long as they are able to pay their monthly bills, they are okay. Employment is already taking a hit. Headlines throughout October and November are showing thousands of layoffs impacting the tech industry. However, soon it may be the shipping industry, the food processing industry, the small businesses in town, the travel industry, and the sales industry.

The tech industry has already started seeing layoffs in fall 2022. Photo Credit: Ron Lach.

So far the Federal Reserve has been downplaying how severe the economic collapse will be. The Fed has been hiking interest rates from 0.25% to 4.5% so far this year. Yet they expect to begin slowing down the size of their rate hikes going forward. This will mean that inflation will keep going higher and higher. Indeed, 2023 may be marked by food prices that double and triple. Gas prices are also expected to climb higher and unemployment will make matters worse for many people. As a summary, expect 2023 to bring: higher inflation, higher unemployment, falling house prices, and falling stock market prices. Though this storm of economic upheaval, gold and silver will probably head higher. As of today, an ounce of physical gold costs about $1800 while an ounce of physical silver costs about $25. During the 1970s when inflation was running rampant, the price of gold went from $35 to $850 (~24x) and the price of silver went from $0.70 to $50 (~71x). If that price action repeats in the next few years, then gold can reach $43,200 an ounce, and silver can reach $1776 an ounce. Similar price action can happen if there is a rush to precious metals by the public after they lose confidence in the security of the global financial systems which already show signs of uncertainty and stress. There is no guarantee that this will happen, but if it did, that would signify the collapse of the US dollar Ponzi scheme.

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