To: TobagoJack who wrote (218534 ) 12/17/2025 3:22:09 PM From: Box-By-The-Riviera™ Respond to of 218715 maybe. Why the 4.6% Unemployment Rate Points to 6+ Million Unemployed Americans Coming Soon ... and How This Unemployment Crisis Will Force the Fed to Print Trillions! The numbers are in, and they aren’t good for the American economy. The Bureau of Labor Statistics, in a report delayed by the historically long government shutdown, has just confirmed what we have been warning about for months: the jobs market is teetering on breaking. The unemployment rate has moved higher to 4.6%, its highest level since the post-COVID chaos of 2021. A paltry 64,000 jobs were added in November, a number that is a rounding error in a workforce of 164+ million people. Wall Street and the mainstream media will try to spin this. They will call it a “softening,” a “return to stability,” or a necessary cooling. They are lying. This is not a soft landing; it is likely the beginning of a nosedive, and this time, there is no parachute.For the first time in history, a cyclical economic downturn is colliding with a structural technological revolution, and the result is likely to be a permanent underclass of millions of unemployable Americans. This is not your father’s recession. In a typical downturn, the unemployment rate rises by an average of 3.6%. That’s the average. Applied to today’s workforce, that means nearly 6 million more Americans are about to lose their jobs. But this cycle will almost certainly be far worse. The rise of Artificial Intelligence means that the jobs being lost are not coming back. Ever. Companies will not rehire when the cycle turns; they will replace. The 6-12 month period of unemployment that was once a temporary setback will become a permanent state of existence for millions.The Anatomy of a Collapse: Beyond the Headline Numbers The headline numbers, as grim as they are, only tell part of the story. The weakness is systemic. While the government-propped sectors of healthcare and construction added jobs, the productive economy is bleeding. Manufacturing, transportation, and warehousing all saw significant job losses. Private wage growth has slowed to a crawl, and the only reason the labor force participation rate rose is because more people are being forced to look for work as their savings are wiped out by inflation. This is the classic signature of the start of a major unemployment cycle. But we are not in a classic cycle. The average 3.6% rise in unemployment during a recession is a terrifying baseline.That’s 5.9 million newly unemployed Americans, joining the 7.5 million already out of work. That’s over 13 million people without a paycheck. Now, consider their financial situation. They have mortgages taken out at peak prices, car loans with double-digit interest rates, and credit card balances at all-time highs. One look at the historical unemployment chart tells you that when unemployment begins to rise, it is followed by a spike higher. That is exactly where we site today. Unemployment is rising and they are trying to stem the tide, but it will be to no avail. This time is not different and in many ways, it is a lot worse. A wave of defaults is coming that will cascade through the banking system, making the 2008 crisis look like a quaint historical footnote. The pressure on the financial system will be immense, but the pressure on the political system will be even greater.A society with 10 million+ newly unemployed citizens is not a stable society. It is a powder keg waiting for a spark. Let’s Dig Into The Following: The secondary impact of the average unemployment rise of 3.6+% and ~6+ million out of work is far more devastating: a wave of defaults that will ripple through the entire financial system. Mortgages will go unpaid, triggering foreclosures. Auto loans will default, flooding the used car market and cratering values. Credit card companies will see delinquency rates spike, forcing them to write off billions in losses. At that scale, the financial system does not just strain; it breaks. The surge in youth unemployment is the most telling sign. These are the entry-level jobs, the junior roles, the first rungs on the career ladder that are being sawed off by A.I. By the time the mass layoffs in the professional classes become visible, the outcome will already be locked in. What we are witnessing is not the shock of the crisis itself; it is the setup. The dry rot has taken hold, and the foundation of the American labor market is about to turn to dust. This time is different. In every previous recession, there was a light at the end of the tunnel. Workers who were laid off knew that, eventually, the economy would recover, and they would be rehired. That assumption is now dangerously obsolete. The rise of Artificial Intelligence has fundamentally broken the cycle of employment. The jobs that are being automated away during this downturn are not coming back. The wave of unemployment-driven defaults will not be contained within individual households. It will metastasize into a full-blown banking crisis that will make 2008 look like a dress rehearsal. The Federal Reserve will have no choice but to intervene. They will kick quantitative easing into high gear, purchasing toxic assets from banks to prevent a systemic collapse. They will lower interest rates to zero, or even into negative territory. And they will coordinate with the Treasury to inject trillions of dollars into the system to keep it from imploding. And the solution for the people will be sold to them as a compassionate and necessary safety net. It will be called Universal Basic Income (UBI), enhanced unemployment benefits, or some other euphemism for helicopter money. It is already a widely debated topic among economists, tech leaders, and policymakers, because they see the train wreck that is coming. The government will choose to sacrifice the currency to prevent mass social unrest. It is already baked in the cake and the purchasing power of every dollar you hold will be systematically destroyed.