Sanford Pinna, M.D.
I predicted 12% five months ago.
If you take TOTAL UNEMPLOYMENT as the
percentage of workers; that is, youth and Chronically Unemployed, people who have lost their incentive to work, the people of the U.S. and Europe are already at close to 16%.
Ken Langone, founder of Home Depot, is predicting 37%!
I am predicitng 27% within 12 months.
KEEP IT HIDDEN
Governments and their capitalist managers do
not want the reality to be seen.
The truth would frighten the populations, and
they would demand a change.
The EU admits that, officially, the percentage
of unemployed is 9.7 percent. Spain has an official
rate of over 18 percent.
In the U.S., the official rate this morning,
Friday, October 02, 2009, will be over the 9.6%
admitted by the government last month.
Real unemployment is 16% .
BANKS AND THE STIMULUS
Banks are only indirectly related to
employment, yet they received a trillion USD
in stimulus funds.
They provide loans to established
businesses that are using their labor to capacity
and need financing for continued growth.
Businesses that have poor sales and
are burdened with excess employees will not
And, yet, the governments have flooded
the banks with money!
Because the banks, in their greed, over-
extended their loans to people and businesses
that could not repay them and these
banks were ready to collapse.
Since the owners of the banks and the
politicians are related and/or are good friends,
the governments took the taxpayers money
and saved the banks.
Now, the banks are sitting on that money.
They will not loan to businesses nor to
They are investing the governmental
money in government bonds and earning fat
That is why government bonds are
so expensive. The interest rates on
government bonds are near zero.
FREE TRADE, THE REAL CULPRIT
The real cause of Western unemployment is
the abundance of goods produced in countries
where the wages are significantly lower than
in the West.
Western companies cannot compete
with Asian, African and Latin American companies.
This is very obvious.
Western unemployment will continue to
rise until Western workers and small company
owners demand and receive protection
from countries where wages are significantly
lower. In addition, Western workers will
have to go back to work in factories and farms.
The Capitalists or Money Managers, of
the West are against Protectionism, because
they are fully invested in countries with cheap
Investing in Asia and Latin America has become
the vogue for all holders of capital.
Smart investors know that the West is
Protectionism would hurt those investments
so they and their friends in government will
be strongly against it.
UNEMPLOYMENT WILL CONTINUE TO RISE
There are two types of labor: Productive
Productive Labor produces goods, manufactured
or agricultural. These goods can be sold domestically
Service Labor provides service to others. This
service cannot be exported internationally.
The West has concentrated its workforce
in the service sector.
Manufacturing and agriculture has gone
down and continues to go down.
Western workers do not want to work in
factories or on farms.
The working conditions are hard and the
compensation is low.
Unfortunately, if Western workers do
not go back to factories and farms, they will starve.
The Money Managers know this, and they
have invested abroad.
It is quite possible that Western workers,
after tasting unemployment, will return to
work in the factories and farms.
In which case, the workers will have to
fight with the investors and their governmental
lackeys for a halt to the ingress of foreign
This will take years.
In the meantime, unemployment will
go up and up.