How to survive Unemployment?

There is a tug of war between negative (yin) and positive (yang) energy in our economy, which is demonstrated by the stock market –the way it is trading these days. During the past year under the guidance of the Ben Bernanke, Federal Reserve pumped unprecedented amounts of capital in our economy to maintain a fragile financial system from falling apart. Bernanke claims that the Federal Reserve Board’s monetary policy was not the reason for these exotic mortgage offers. But a lot of lobbying aims to weaken the Fed, claiming its actions on interest rates that caused the problems. Bernanke favors inflation targeting approach. More specifically, he has made statements arguing in favor of 2 percent inflation in two years.

Interestingly, the Fed said that inflation is no real concern, and if we do not have wage inflation, at least not any serious wage inflation because the unemployment rate remains very high. Forget inflation hawks. The unemployment hawks are quietly winning the debate at the Federal Reserve. State and local budgets are looking terrible, without federal support over 500,000 jobs will be eliminated by the end of 2011. The statistics are alarming, 15% of the adult U.S. is unemployed. Many people have this ridiculous idea that people my age who were in the middle management can no longer work, because they were taught all the latest techniques of the management.

Investors should be cautious here and avoid the “all-in or all-out mentality” of investing in the market as a whole. If you are not investing for dividends and income, you’re just gambling. Although the Americans are courageous and put on a good face everywhere, one wonders how long this can last. There are at least ten major limitations to the federal government to be restored to restore the strength and glory of America. We need solutions, not speeches and luxury. I feel absolutely terrible for the brave soldiers in Iraq and Afghanistan; some of them come home after years of sacrifice, to discover that they have no means to earn a decent living. The Government spends thousands and millions of dollars in making a soldier who absolutely gets nothing when he is back home.

Not only would it not take a lesser job to help the country emerge from its debt problem. No this is not stupidity, just do the math. When you add the unemployed and the under-employed you are looking at nearly 30% of the U.S. adult population not effectively used, employed and fed. Where are the entrepreneurs and where are our elected officials? Americans are tired of the Democrat vs. Republican crap; our country is going down the toilet. We the people are struggling and looking for a reason to believe. We do not castle in the rhetoric of the air, we are not looking for some good sounding words or speeches but some solid action to be done in this regard at the grass-root level.

For example, if public spending was strictly limited, we could easily reduce the tax to somewhere around 10 to 15 percent of all revenues of the United States. We need sensible people who can find a way to effectively work with the capital to create jobs. Create Self-employment, do what you are good at, start a small venture, float it online. You will start with small orders, but at least you have some extra money to take care of you and your family on a rainy day.