“A furlough is a temporary unpaid leave of some employees due to special needs of a company”, can we say massive “Lay-offs”?
Independence Day 2013
This could be the worse 4th of July holiday in the United States since the War between the States.
“Thousands of Washington state employees are waiting to see if they will be furloughed as of July 1 (2013) after state lawmakers sent out thousands of notices on Monday warning of an impending partial government shutdown. The legislators failed, through two special sessions, to agree to a budget. If no deal is reached by Sunday, June 30, 34 state agencies will be completely shut down, and dozens of others will be partially staffed. It is expected that over 25,000 state workers would be temporarily laid off.
Included in the agencies to be completely shuttered are services for the blind and the Workforce Training and Education Board.”
“The state is home to a number of Fortune 500 companies, including Microsoft, whose president Bill Gates, with a personal net worth of $72.9 billion, … Washington’s projected 2013-2015 spending plan is for $33 billion.
That just one individual holds more than twice as much wealth as is budgeted to run a state speaks to the level of inequality…” http://www.wsws.org/en/articles/2013/06/27/wash-j27.html?view=print
Are you prepared?
Other states are facing similar budget crisis and pension fund financial issues as the bond bubble’s frailty is exposed to rising interest rates and a collapsing Market.
Here, below, are two current reports from King World News Blog that reveals the fear and plans by the wealthy (no, not the elite central planners) fearful for their wealth.
This is great depression style talk:
“On the heels of incredibly turbulent trading in key global markets, today 40-year veteran, Robert Fitzwilson, put together another extraordinary piece. Fitzwilson, who is founder of The Portola Group, warned that the world is about to see an event that will “shock the financial system,” and set the stage for a “New Financial World Order.” Below is Fitzwilson’s exclusive piece…
The trouble with the plan is that money can be created, but controlling where it winds up is much more difficult. What we now know is that the money largely winds up blowing bubbles in the stock, real estate and art markets as well as being channeled to the proprietary trading desks of the biggest global banking institutions. A $119 million purchase of a house in Woodside, California, and a $95 million penthouse purchase in Manhattan are but just two examples. Banks reporting zero trading losses on any day in the first quarter of this calendar year is another.
The money was created, but little of it reached the people from whom the wealth effect was expected. Temporary wealth was created for holders of fixed income due to the disastrous policy of driving down interest rates, but retirees saw their income confiscated. The income lost would probably have stimulated growth more than the increase in prices given to holders of fixed income.
Read full report: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/25_The_World_Has_Never_Seen_Anything_Like_This_In_History.html
“One the heels of last week’s propaganda by the Fed, the Godfather of newsletter writers, Richard Russell, writes about the end of the current monetary system, the bond market collapse, volatility in stocks and the end of the Federal Reserve.”
“First, I believe the bull market in bonds is over. That means that we may face many years of irregularly rising interest rates. Remember, the Bernanke Fed artificially depressed interest rates with its huge QE program, during which it bought massive quantities of bonds. The Fed’s program cannot continue forever — in fact, Bernanke has recently conceded that the Fed is making plans to “taper” (down) its bond buying program. When the Fed tapers, bond prices will decline towards their normal, free-market levels, and interest rates will rise (bonds and their yields move in opposite directions).
Next, one crucial characteristic of a bear market bottom is the appearance of great values in blue-chip stocks. At the lows of 2009 we never saw blue chip stocks selling at classic great values. At the bear market lows of 1932, 1942, 1949, 1974 and 1982, the Dow sold at less than 10 times earnings with dividend yields in the 5-7% range.”
Read full report: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/25_Richard_Russell_-_A_New_Monetary_System_%26_End_Of_The_Fed.html
The failure to warn the public of gloomy forecasts in the major financial media is very revealing.
The silence and rosy forecasting instilling, unfounded, confidence for the financial markets is a trap for the pensioner and working middle-class, in my view. – Ron