Cross posted from The Peoples Patriot Blog
Like oxygen, the American people need money to live. Often times the majority of the money we use to get by in life, is borrowed. If you accept this premise, then you will agree that the cost of money in the form of interest rates, has a direct impact on the financial lifestyles of all Americans. It’s easier to improve one’s lifestyle when the cost of money is low.
The Federal Reserve controls the cost of money in the United States. They determine, based on various economic data, the level of short term interest rates. Basically when the economy is strong as evidenced by high employment rates and prices that are rising based upon inflation rates, the Fed will raise the cost of money to slow down the economy to ward off inflation.
In June of 2003, the federal funds rate, one of the rates the Fed controls, bottomed out at 1.00%. Since that time, the Fed has raised this interest rate, a direct reflection of the overall cost of money, seventeen times. Since June of 2003, the federal funds rate has risen 525% to 5.25%.
Based on the Federal Reserve’s rate increases, one would believe that the last four years have been an economic Nirvana. However, talking to average Americans about their finances would indicate otherwise. In this current climate of rising prices, the most profound in the housing market, the average blue collar worker in America has seen wages flatten or decrease. In some cases, Americans have been victims of outright job displacement. So why then have interest rates or the cost of money continue to rise, making life even more difficult for the typical U.S. citizen?
As I write this, the stock market has plunged 135 points. The reason given is that Ben Bernanke the Chairman of the Federal Reserve made comments that would erase any optimism for a decrease in the cost of money (interest rate cut).
“Overall, the economy appears likely to continue to expand at a moderate pace over coming quarters,” he said.
One big risk: “core inflation remains uncomfortably high,” he said. However, core inflation “seems likely to moderate gradually over time,” he said.
He noted that higher rents had been a major factor in the acceleration of core inflation. He expected that force to dissipate.
It’s estimated that we have approximately 20 million illegal aliens in this country. While the likes of anti American companies like Bank of America try to profit from illegal aliens by providing them with loans, the vast majority of illegal aliens are renters. There is no doubt in my mind that these twenty million people are directly responsible for the strong rent component of the core inflation figures. That is to say that they have driven up housing costs not only in the ownership market but especially in the rental market.
It’s bad enough that American renters have to pay higher rents due to competing with 20 million illegal aliens, many living fifteen to twenty per household in violation of zoning laws. To add insult to injury, all Americans are faced with a higher cost of money. High cost of money equals a lower lifestyle. This is another way the American people are forced to pay for the elitist’s cheap illegal alien labor.
Price inflation isn’t the only indicator the fed uses to regulate the cost of money. Another very important component used in monetary policy is employment data. When jobs are being created at a strong pace, the economy is considered strong. When the economy is strong, the Federal Reserve does not decrease the cost of money. When it’s real strong, they will raise interest rates.
In December 2006, according to the monthly household employment survey, the economy created 303,000 new jobs. The financial community was expecting 100,000 new jobs. Sounds great doesn’t it? Everyone that wants a job should have one. However, if we take a look at the who is getting those jobs it paints a less rosy picture. Add to that with numbers like these, the cost of money or interest rates will remain high.
Here is an ethnic breakdown of the December jobs numbers.
- Total: +303,000 (+0.21 percent)
- Hispanic: +178,000 (+0.89 percent)
- Non-Hispanic: +125,000 (+0.10 percent)
In December 2006, as evidenced by the above numbers, 6 in 10 jobs went to Hispanic workers. Hispanic workers represent 14% of the total U.S. work force. The overall unemployment rate held steady at 4.5% while Hispanic unemployment dropped .1% and non-Hispanic unemployment rose .1%.
If it weren’t enough that 6 in 10 jobs went to 14% of the work force, many of which are deemed illegal, the creation of these jobs in and of itself gives reason for the Federal Reserve to keep the cost of money relatively high, thus inflicting financial misery on all Americans. Not only have Americans been displaced in the work force and/or have had wages suppressed due to illegal alien employment, every American that borrows money had to pay a higher cost for borrowing as well. This is just another way our government degrades our lifestyles by allowing illegal immigration to flourish.
Like a cancer that invades a body, the effects of which can be vast and all consuming, illegal alien labor has both obvious and not so obvious affects on America and it’s citizens. In the end, should the cancer go untreated, it consumes the body by killing it. The need to treat this national form of cancer has reached a critical proportions. The life of the American “body” depends on it. The lives of the American people depend on it as well.
This was a production of The Coalition Against Illegal Immigration (CAII). If you would like to participate, please go to the above link to learn more. Afterwards, email stiknstein-at-gmail-dot-com and let us know at what level you would like to participate.