P2P001: Why A Job Alone Is Risky

Click above/below for the video/audio broadcast versions with transcript below.

Introduction

I will break it into 3 parts: 1) Economic Downturn For Years, 2) Zero Control Over Your Job, and 3) Health Versus Wealth.

Part 1: Economic Downturn For Years

Well, in actual fact, if you knew in advance, if you had forewarning of what was going to happen in the economy, that there was going to be a major downturn, would you have done something about it? It’s like saying would you have taken some precaution against an event, an illness, if you knew it was possible or likely to occur.

We would think that we would do it, but in actual fact most people don’t. They just live for today and they ignore the warning signs. In fact, from the early 1990s I was very much aware that the Western world was going to go through an economic boom.

The Baby Boomer generation after World War II was so big that it was reaching its peak spending power by the time they reached their 40s and that’s when they had children and they large houses, their biggest expenses and also their biggest income. And so they can afford that. And that is why we had the boom.

But now that generation is starting to approach retirement and will it happen for the next 15 to 20 years as they leave the workforce. Many will stay on through necessity. But, are a use somebody that is still in the workforce and will be working during this time? Think of all the costs that will come out of your tax money to pay for that generation as they have gone through and now not contributing to the workforce, and you see the state of the economy. Now ask yourself, can you really just be doing what you’ve always done with the job that you’ve got?

Part 2: Zero Control Over Your Job

If you look at the economy, and just go and look up the amount of debt in the United Kingdom at the moment. What makes United Kingdom different to some of the other countries is that there is so much private debt. It’s made up of business debt, it’s made up of financial debt in the financial sector of which the UK and London is a prime base of industry. It’s also personal debt, not just the government did you hear about. In fact, it even is equivalent to Japan about five times GDP is what the level of depth here is in the United Kingdom.

So take a look around. Are you actually putting more pounds in your pocket at the end of the week? Is your employer employing more people or is it stagnating? You see the stimulus that I knew would come is not being fed through to local business. It’s being reserved, kept in reserves with large financial institutions which are sometimes speculating on the markets, and that’s what you see…the volatility.

So ask yourself, how safe are you in your job? Because your job could actually be relocated. The business itself may even disappear. That’s what happens. This is really what’s called a clean out, a shakeup of the economy, and it happens every so often to get rid of the inefficiencies. Now you’ve seen all the debt that exists in the economy today, that’s got to be cleared out. It’s got come to an end.

And therefore, what are you doing, what control you got over your financial circumstances? That’s why I say, “Zero control over your job”. So don’t be surprised if this economy lasts for a little while come, in fact a few years.

Part 3:Health Versus Wealth

Now if you’re of the generation that is retiring, the Baby Boomers, you’re going to be one of a large magnitude of people retiring at the same time, requiring health services, being a drain on the economy. Now I took a clipping out of a newspaper from early 2012 where the Japanese minister says this to the elderly population of Japan, “Just hurry up and die!”

Now you think that’s a bit over the top and it can’t happen here. Well just think about the amount of resources that will be used in the United Kingdom as the Baby Boomer generation lives longer. Now the average lifespan of a woman in Japan is 88 and then they live quite a healthy lifestyle, but not contributing. Well if you think it can’t happen here, well what makes you think they just can’t pull the plug if it becomes too costly. In fact, that’s probably what does happen. But there will be more and more of that.

So, in total, what I’m getting at, if you think you’re comfortable in your job just imagine this…you know what it’s like driving a car and breaking to stop the vehicle very quickly. This economy is like driving on ice. You’ve got to do the opposite. You’ve got a handle the steering wheel and pedal on the brakes, which is something you not typically used to doing.

So you can’t really assess the past 20 years with the next 20 years. You’re going to have to do it with open eyes, with a different vision and understand that we’re going to have to change the rules and part of that is asking yourself the question, “Can I rely on my job?”, “Is it secure”, or, “What can I be doing in my spare time perhaps to create my own business?”, or just sit back just watching TV or just watching time tick by and doing nothing it and then realizing it’s not getting better in a hurry.

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