As 1.3 Million Americans Are About To Lose Their Jobless Benefits This Week, The Unemployment Rate Will Surge To 10.5%

As 1.3 Million Americans Are About To Lose Their Jobless Benefits This Week, The Unemployment Rate Will Surge To 10.5%
Submitted by Tyler Durden on 06/26/2010 22:24 -0500

http://www.zerohedge.com/article/13-million-americans-are-about-lose-their-jobless-benefits-week-unemployment-rate-will-surge

As we reported on Friday, a critical bill that was unable to pass this past week was the extension of unemployment benefits to millions of Americans currently collecting a $1,200 average monthly stipend from the US government for sitting on their couch and not paying their mortgage. As a result of this huge hit to endless governmental spending of future unearned money, the WSJ reports that "a total of 1.3 million unemployed Americans will have lost their assistance by the end of this week." Furthermore, the cumulative number of people whose extended benefits are set to run out absent this extension, will reach 2 million in two weeks, and continue rising: as a reminder the DOL reported over 5.2 million Americans currently on Extended Benefits and EUC (Tier 1-4). The net result is yet another hit to the US ledger, as soon 2 million Americans will no longer recycle $1,200 per month into the economy. In other words, beginning in July, there will be $2.4 billion less spent each month by America's jobless on such necessities as LCD TVs (that critical 4th one for the shoe closet), iPads and cool looking iPhones that have cool gizmos but refuse to hold a conversation the second the phone is touched the "wrong" way. As the number of jobless whose benefits expire grows, the full impact of lost money will progressively increase, and absent some last minute compromise, the monthly loss will promptly hit $5 billion per month. Annualized this is a hit of $60 billion to "consumption", and represents roughly 120 million iPads not purchased, and about half a percentage point of GDP (ignoring various downstream multiplier effects). Worst of all, as these people surge back into the labor force, the unemployment rate is about to spike by nearly 1%, up to 10.5%.

Higher Taxes Guarantee A Depression Via Eric King's Blog on King World News

Eric King: Higher taxes are a trend around the globe in developed countries. The west is mired in an extremely harsh economic cycle, but politicians never learn. They love to tax, and when coffers run dry the solution is to tax more. When you are faced with this type of cycle, coupled with increased taxes you are guaranteed a depression.

By Andrew Atkinson

June 22 (Bloomberg) -- British Chancellor of the Exchequer George Osborne increased the value-added tax rate to 20 percent from 17.5 percent in the first permanent change to the levy on sales of goods and services in almost two decades.

“The years of debt and spending make this unavoidable,” Osborne told Parliament in London in his emergency budget today as he announced a package of spending cuts and tax increases to cut the U.K.’s record deficit.

The rate will increase from January and produce more than 13 billion pounds ($19 billion) a year of extra revenue by the end of this Parliament in 2015, Osborne said. “That is 13 billion pounds we don’t have to find from extra spending cuts or income-tax rises,” he said.

The VAT increase dwarfed other revenue-raising measures in a budget that sought to all but eliminate a deficit that reached 11 percent of gross domestic product last fiscal year.

The tax generates about 15 percent of total government revenue and retailers say the rise may dampen consumer spending as the economy emerges from its worst slump since World War II. CLICK HERE to continue reading this article from Bloomberg.

Gerald Celente The Stimulus only Stimulated The Banks - The Entire System is Collapsing - RT 6-18, 2010

June 18, 2010 — The number of people filing new claims for jobless benefits jumped last week after three straight declines, another sign that the pace of layoffs has not slowed. Gerald Celente says that there is no way governments can just keep pumping money into the economy and it will only get worse, with an eventual crash.

Gerald Celente is the #1 Trends Forecaster I highly recommend his TrendsResearch Journal at http://www.trendsresearch.com

Following are Gerald Celente's Forecasts for 2010: · The Crash of 2010: The Bailout Bubble is about to burst. Be prepared for the onset of the Greatest Depression. · Depression Uplift: The pursuit of elegance and affordable sophistication will raise spirits and profits. · Terrorism 2010: Years of war in Afghanistan and Iraq ­ and now Pakistan ­ have intensified anti-American sentiment. 2010 will be the year of the lone-wolf, self-radicalized gunman. · Neo-Survivalism: A new breed of survivalist is devising ingenious stratagems to beat the crumbling system. And, they're not all heading for the hills with AK-47's and pork & beans. · Not Welcome Here: Fueled by fear and resentment, a global anti-immigration trend will gather force and serve as a major plank in building a new political party in the US. · TB or Not TB: With two-thirds of Americans Too Big (TB) for their own good (and everyone else's), 2010 will mark the outbreak of a "War on Fat," providing a ton of business opportunities. · Mothers of Invention: Taking off with the speed of the Internet revolution, "Technology for the Poor" will be a major trend in 2010, providing products and services for newly downscaled Western consumers and impoverished consumers everywhere. · Not Made In China: A "Buy Local," "My Country First" protectionist backlash will deliver a big "No" to unrestrained globalism and open solid niches for local and domestic manufacturers. · The Next Big Thing: Just as the traditional print media (newspapers/magazines) were scooped by Internet competition, so too will new communication technologies herald the end of the TV networks as we know them.

New jobless claims up sharply as layoffs persist - The "Jobless Recovery" continues..

http://finance.yahoo.com/news/New-claims-for-jobless-apf-1639241920.html?x=0&.v=3

New jobless claims up sharply as layoffs persist, raising concerns about recovery's strength