Have You Prepared For Losing Your Job In The Upcoming Depression?
One of the most important set of plans and preparations that you can make today, are those of a hypothetical job loss (you, or your spouse).
If you are one of the minority who actually follows and knows the reality of our current economic situation, then you of all people should know that ‘when’ this global bubble bursts – there will be job loss on a grand scale as many businesses go under while many others will struggle to stay afloat.
When that happens, will you or your spouse be one of the many who will lose their job?
Have you thought about that, and have you made any plans for that?
Are you ready? Time is short…
Just yesterday having visited Greg Hunter’s blog, I read the synopsis of his recent interview with money manager Michael Pento who said,
“The next crash will be one for the record books”.
“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 1929—combined.”
“Unfortunately, I think that’s exactly where we are headed. It’s not my opinion. It’s not a Cassandra. It’s not my view.”
“It’s the entire view of all global markets.”
Pento is forecasting a global depression. He went on to say, “It’s happening. It’s happening now. This is not your garden variety recession. You have impotent central bankers and impotent sovereign nations.”
“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.” Pento said to Hunter, “…until the Fed starts printing massive amounts of money to turn the imploding economy around, “It’s going to be a devastating, metastasizing global depression. It’s on its way.”
Bill Holter of jsmineset.com recently said,
“Western markets, ALL markets are a fraud. Our Treasury market is one where the biggest buyer is “our self” …the Fed and the ESF (Exchange Stabilization Fund).”
“The situation in derivatives is one giant mountain of dynamite waiting for a spark.”
Everyone knows we are broke, yet ask anyone and the odds highly favor you will hear “the government will never let it happen”. Even if you are silly enough to believe this you must ask yourself, what are the ramifications when markets become “make believe”, (as they are now)? What happens when ‘reality’ sets in??
The other day Michael Snyder wrote, We have not seen global economic activity fall off this rapidly since the great recession of 2008. Manufacturing activity is imploding all over the planet, global trade is slowing down at a pace that is extremely alarming, and the Baltic Dry Index just hit another brand new all-time record low. If the “real economy” consists of people making, selling and shipping stuff, then it is in incredibly bad shape. Here in the United States, the dismal economic numbers continue to stun all of the experts.
It has been said that if you want to know what is really happening with the U.S. economy, just watch the railroads. And right now, rail traffic all over the nation is falling to depressingly low levels.
According to Wolf Richter, operating revenues for Union Pacific were down 15 percent last year and net income dropped 22 percent…
Sprint just laid off 8 percent of its workforce, GoPro is letting go 7 percent of its workers, and Wal-Mart just announced the closure of 269 stores.
Richard Russell just said, “My thinking is that this is the big bear market that will correct the entire rise from the 1932 low.” “It’s been many generations since Americans have seen hard times. I rest on the old axiom ‘prepare for the worst, and hope for best’.” “The unbelievable amount of debt that is currently being created will create monster inflation that will destroy every currency.” Russell also warned that countries are preparing for a massive global collapse.
I could go on and on and on with reports of substantiation for the ‘real’ state of our economy, however you can research that on your own if you’re interested (the information is out there – all you have to do is designate time to find it).
With that said, back to the original question…
Have you prepared for a job loss?
Your immediate thought will be something like, “I wonder how much I will get for unemployment compensation?” The fact is that it will pale in comparison to your former wages, and it will be cut off after a certain period of time.
Another immediate thought might be, “My families health insurance has been part of my benefit package, and now I’m going to lose it…”. While you may have the opportunity to buy your own ‘COBRA’ health policy after a job loss, the fact is that they are expensive, and it too is temporary and will be cut off after a certain period of time.
Another thought might be, “How long will it take for me to find another job, or will I even be able to find one?” The fact will be that if the economy at large is tanking to the extent that I am hypothesizing, then it will probably be very difficult to find a new job – at least one which you may consider equivalent. If you are middle-aged or older, it will be exceedingly more difficult…
You might say to yourself, “How in the world am I going to be able to pay (fill in the blank) when the bills keep coming in?” This will become an immediate and stressful issue, particularly if you have been living on-the-edge or close to it (paycheck-to-paycheck) with little or no cash savings.
So, what can I do now to minimize the fallout?
Well, unfortunately the time may be near – and you might not have much time. On the other hand, maybe you will – there’s no ‘crystal ball’. But with that said, I would presume that time is short, so act accordingly.
Start saving some cash. “Cash is King”. Until it is not… (which is another story).
If you’re currently covered under an employee health plan and need some work done, then do it now while you’re covered (including dental, vision, etc..).
Buy extra food (especially the items you normally consume and ‘on sale’) and build a deeper pantry.
Self-examine your current skill set(s) and begin to look around to discover whether or not they would be of value at another employer (just in case). Begin (or renew efforts) to establish external contacts – which may help if you end up needing them for work.
You might have to geographically move (depending on your market) to re-acquire work. Start some research in that department.
But what if it’s really SHTF?
The thoughts mentioned above are common-sense actions which may help in a ‘normal’ and/or potentially impending job loss situation. The thing is though, if the global economic collapse is much worse than just a recession (many are predicting a full-on depression), then it might truly become a SHTF situation whereby your odds of getting a replacement job will be quite low. This will be a much more dire situation, and one where conventional planning may not apply.
If it becomes that bad, there are other considerations…
What if you no longer are able to pay your rent or your mortgage? You will most certainly be buying food before you pay your ‘bills’… but eventually you may get the boot… So it may be prudent to think about where you might be able to go if that does happen. Maybe it will involve moving in with someone else – perhaps some family members coming together to share resources under one roof – situations like that…
Note: Don’t fool yourself into believing that the government will save you during a true SHTF meltdown. You may think that you’ll get ‘money’ from them to stay afloat, but even if you do – it will likely become of very little value (comparatively), and you must understand that if they start printing to that extent, the subsequent lessening value of the currency itself will render more and more of it to less and less value as it all spirals around and down the drain…
While none of us want to think about what life might be like living under a true and deep depressionary period, the mental exercise might help you to face what might come your way – and to potentially prepare for it now while you still have time.
So let me throw it out to you… what are some ideas of how possibly to prepare for a job loss and the subsequent problems that will accompany it… (either a recession period – or a much worse SHTF meltdown period).