Officially, unemployment in America stands at 7.6% (Bureau of Labor Statistics “U.3” for March), its lowest level in 4 years. Underemployment, according to the same sources, is pushing 15% (the official “U.6” number) – that represents the percentage of Americans who are unable to find full-time jobs.
Unofficially, the statistics are much worse.
For example, the widely followed Shadow Government Statistics group collects jobs data that is equivalent to the economic measurements used in the 1960s, 70s, and 80s – by these measures, American underemployment rates are shockingly high: 24% in the most recent month (www.shadowstats.com). This number for underemployment is 50% higher than the official calculation, and almost four times the 7.6% headline unemployment number created and promulgated by the Obama Labor Department. Furthermore, the grim shadow statistics are consistently much higher than official calculations; plus they exploded upward in 2007-8 and remain stubbornly high in the wake of the financial collapse and bailout regime.
Recently, an influential Federal Reserve governor acknowledged America's grave unemployment problem, without touching on the evident manipulation and distortions that mask its true extent. His idea of a prescription should give everyone pause.
Permanent, “Structural” Unemployment
In an interview in the Washington Post's WonkBlog on April 15th, Boston Federal Reserve President Eric Rosengren asserted the recession is over and unemployment rates are now 'plunging'. But he went on to voice concern about the long-term unemployed, who have given up looking for work in the 'slow recovery'. Conflating the 2008-13 world economic collapse with a business cycle, the Fed official raised the possibility that “cyclical” unemployment could become “structural”. In other words, the long-term unemployment and underemployment triggered by the Wall Street derivatives implosion could cause workers' skills to 'atrophy.' This would create American economic structures with permanent joblessness for tens of millions of victims of the crash, according to Rosengren.
Regardless of whether you view the problem as cyclical or a planetary swindle, its dimensions are enormous. If you believe Obama administration numbers, 21 million Americans remain underemployed as joblessness 'plunges.' If you find the traditional numbers used by Shadowstats.com to be more credible, the jobless number exceeds 32 million workers. The latter number approaches the 42 million Americans who are known to lack medical insurance and receive food-stamp benefits.
Fed's Poisonous Prescription for Joblessness
These jobless and underemployed Americans, most of them discouraged and desperate for solutions, got even more discouraging news in the solution proposed by Mr. Rosengren.
The solution to likely permanent joblessness and poverty of 24% of the workforce, according to the Boston Fed President, is a continuous, secret bailout of the too-big-to-fail banks. This, in his words, will lead to economic expansion and job opportunities. Eventually.
The Federal Reserve policy of Quantitative Easing, or QE, involves transferring $85 Billion of public credit each month – that's $1.2 Trillion of government investment every year – to the same bankrupt institutions that created or purchased this fraudulent paper in the first place. They include many of the largest, money-center banks – Citibank, JPMorgan Chase, Bank of America, and others. Many of the beneficiaries are members of the private Federal Reserve cartel who are voting trillions of publc credit to themselves, to conceal their role in swindles causing the crash.
Fed governor Rosengren's poisonous prescription for joblessness is a breathtaking and impudent program of secrecy, impunity, self-dealing and conflict of interest. At a time of austerity and attempts to cut or manipulate Social Security and Medicare trusts funded by working Americans, the Federal Reserve System is intent on diverting well over $1 Trillion of public credit to its member banks.
Time to Seize the Fed! Join United Front Against Austerity (UFAA)
Every thinking American should understand the disingenuous Federal Reserve’s policies and then join the United Front Against Austerity (www.againstausterity.org) to fight against them.
The American people must seize the Federal Reserve System now to apply the greatest credit-creation engine on earth for productive investment in American infrastructure, industry, national development, and world advancement.
End Joblessness! Federalize the Federal Reserve System!