Britannia Radio

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EDITORIAL - Dr. Jerome R. Corsi

Movement Expected to Gain Momentum in 2011

As Rep. Ron Paul, R-Texas, takes over the House monetary policy subcommittee, the need to audit the Federal Reserve has never been greater.

The Fed is currently engaged in the second round of quantitative easing, or QE2, in which the Fed plans to buy another $600 billion in long-term Treasury debt at a rate of $75 billion a month through June 2011.

Fed decides to print more dollars. Here the Fed is sailing off into unchartered waters, having exhausted the scope of traditional monetary policy by keeping interest rates at or near zero since 2008.

Unable to come up with anything more creative, the Fed has resorted to printing money, in effect telling the Treasury that the Fed as a private bank will lend the federal government all the money the Obama administration feels it needs to continue massive deficit spending through at least the middle of next year.

Amazingly, the Fed boasted that inflation was "too low" and that this massive injection of cash into the U.S. economy would create jobs.

Somehow, the Fed has launched off on the monetary policy version of the Treasury's Keynesian fiscal policy - the Treasury will spend probably another $1 trillion in deficit in fiscal year 2011, while the Federal Reserve will play the role of willing accomplice, blindly printing seemingly whatever amount of money to cover the staggering debt the Obama administration appears comfortable issuing.

The Fed concedes the argument this policy will create inflation. No kidding? All good Keynesians acknowledge a willingness to create inflation to stimulate the economy through deficit spending.

In addition to inflation, QE2 will most certainly force what amounts to a 20 percent devaluation of the dollar, setting the stage for the end of dollar hegemony in international trade that economist Robert Mundell and China have been urging upon the G-20, with the goal of escalating the role of the International Monetary Fund in international trade.

Fed has doubled holdings of Treasury debt since 2008 In the first round of QE that ended in March, the Fed bought nearly $1.7 trillion in U.S. government debt,

the majority of which was Freddie and Fanny-issued paper, with only about $300 billion of the $1.7 trillion going into Treasuries.

Under the Obama administration, Federal Reserve Chairman Ben Bernanke has doubled the Fed holdings of Treasury Debt, going from $400 billion in 2009 to over $800 billion today.

What is under discussion is the possibility the Fed may buy as much as $100 billion a month of newly issued Treasury debt, beginning in November.

This could easily double again the amount of Treasury debt held by the Fed, bringing the total near $2 trillion.

Debasing the dollar PIMCO's Bill Gross, the man CNBC billed Source: www.cnbc.com/id/39957072 as "the manager of the world's largest mutual fund," said last Monday that the dollar is at risk of losing 20 percent of its value over the next few years as a direct consequence of the Fed's QE2 plan.

"I think a 20 percent decline in the dollar is possible," Gross told CNBC. "When a central bank prints trillions of dollars of checks, which is not necessarily what (a second round of quantitative easing) will do in terms of that amount, but if it gets into that territory - that is a debasement of the dollar in terms of the supply of dollars on a global basis."

At PIMCO, Gross runs the $252 billion Total Return Fund and oversees more than $1.1 trillion as co-chief investment officer.

Call For The Audit Of The Federal Reserve

End The Federal Reserve Now!

He stressed that QE2 "not only produces more dollars but it also lowers the yield that investors earn on them and makes foreigners, which is the key link to the currencies, it makes foreigners less willing to hold dollars in current form or at current prices."

Finally, top Wall Street professionals have begun admitting that a main theme of my book America for Sale is true.

"It's a globalized economy of our own doing for the past 20-30 years," Gross admitted. "We encouraged all of this, but it is coming back to haunt us. To the extent that Chinese labor, Vietnamese labor, Brazilian labor, Mexican labor, wherever it is coming from - that labor is outcompeting us and holding our economy down.

Audit the Fed Now!

The point is that Fed makes monetary policy behind closed doors.

Clearly, Ron Paul will call for a first-ever comprehensive audit of the Fed, a move that must be done immediately, before the Fed declares that QE2 needs to be followed by QE3.

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ON THE U.S. MIDDLE CLASS

EDITORIAL - Dr. Jerome R. Corsi

The American Middle Class is the Loser in the Global Economy. What is becoming increasingly clear is that the U.S. middle class is under assault.

Business Insider has published 22 statistics Source: www.businessinsider.com/22-statistics-that-prove-the-middle-class-is-being-systematically-wiped-out -of-existence-in-america-2010-7#83-percent-of-all-us-stocks-are-in-the-hands-of-1-percent-of-the-people-1 aimed at proving "the middle class is being systematically wiped out of existence in America.

What is heard to realize is that warned that the current high rate of unemployment and the shrinking of the middle class are not the result of a current recession.

Instead, the main argument of my book America for Sale: Fighting the New World Order, Surviving a Global Depression, and Preserving USA Sovereignty is that this is what globalism looks like.

In a global economy, where U.S. workers are forced to compete with Chinese workers who make less than one dollar an hour, the jobs outsourced to countries like China and India are not returning.

Equally, while the United States is exporting higher paying jobs, the nation is importing an underclass across open borders, providing additional pressure on salaries and benefits in lower-paying jobs Consider the following 22 statistics published by Business Insider:

1. 83 percent of all U.S. stocks are in the hands of 1 percent of the people;

2. 61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007;

3. 68 percent of the income growth between 2001 and 2007 went to the top 1 percent of all Americans;

4. 38 percent of Americans say that they don't contribute anything to retirement savings;

5. 43 percent of Americans have less than $10,000 saved for retirement;

6. 24 percent of American workers say they have postponed their planned retirement age in the past year;

7. 1.4 million Americans filed for personal bankruptcy in 2009, a 32 percent increase over 2008;

8. Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975;

9. For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together;

10. In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to one; since the year 2000, that ratio has exploded to between 300–500 to one;

11. As of 2007, the bottom 80 percent of American households held about 7 percent of the liquid financial assets, including U.S. stocks, U.S. bonds, and mutual funds;

12. The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation's wealth;

13. Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008;

14. In the United States, the average federal worker now earns 60 percent more than the average worker in the private sector;

15. The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago;

16. In America today, the average time needed to find a job has risen to 35.2 weeks;

17. More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying;

18. For the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million American in 2011;

19. This is what American workers must now compete with: in China, a garment worker makes approximately 86 cents an hour and in Cambodia, a garment worker makes approximately 22 cents an hour;

20. Despite the financial crisis, the number of millionaires in the United States rose 16 percent to 7.8 million in 2009;

21. Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years;

22. The top 10 percent of Americans now earn around 50 percent of our national income.

Call For The Audit Of The Federal Reserve

End The Federal Reserve Now!

A study published in June by the Center on Budget and Policy Priorities, a Washington, D.C.-based non-profit research organization, Source: www.cbpp.org/files/6-25-10inc.pdf demonstrated the income gap in the United States between the richest 1 percent of America and the middle/poorest fifths of the country more than tripled between 1979 and 2009, according to Congressional Budget Office data.

The Center reported that between 1979 and 2007, average after-tax incomes for the top 1 percent rose by 281 percent after adjusting for inflation - an increase in income of $973,100 per household - compared to increases of 25 percent ($11,200 per household) for the middle fifth of households and 16 percent ($2,400 per household) for the bottom fifth.

"The gap between the top 1 percent and the poorest fifth of Americans widened even more sharply," the CBBP wrote. "In 1979, the incomes of the top 1 percent were 22.7 times higher than those of the bottom fifth.

By 2007, top incomes were 74.6 times higher than those at the bottom - more than tripling the rich-poor gap in 28 years."

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Yes, I Want To Know About The Federal Reserve!

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