(ThyBlackMan.com) Black people in the United States live in a society where a segment of the majority white population is attempting to exert control economically and politically. What blacks are experiencing is what blacks experienced in South Africa, prior to the overturning of that racist system. A form of apartheid identified with South Africa that blacks are experiencing here in the United States is economically based.
Economic discrimination is evident when you see black people having the same problems of developing black businesses and the same high unemployment rates from one corner of the United States to the other. In other words, racial discrimination in these two categories is national in scope.
Federal Reserve Chairman Ben Bernanke recently announced that the Federal Reserve Bank will start putting together an exit strategy from the financial markets where it is buying federal government bonds at a rate of $85 billion dollars a month. He is apparently satisfied with what the program has 
accomplished to date and that is keeping interest rates low, thus giving the economy an opportunity to recover from the 2008 downturn.
Invariably as the fed exits the bond market, interest rates will rise exacerbating already high unemployment among blacks. Mr. Bernanke indicated in a news conference that the fed’s targeted national unemployment rate is 7%. The current national unemployment rate for May is 7.6%. He states he sees the current quantitative easing program, which is what the bond-buying program is officially called, accomplishing this targeted unemployment rate by the middle of 2014. Thus, it is time for them to contemplate an exit strategy.
It does not mean the Federal Reserve Bank will immediately stop being the 800-pound gorilla in the bond market. However, it will be looking to wind down its purchases of bonds as its target of lower unemployment is met. The way the fed keeps interest rates low through buying bonds or buying debt, which is what bonds represent, is when the U. S. Government comes to the bond market for funds or financing, the fed stands ready to buy these bonds. This includes bonds issued by government housing financing agencies Fannie Mae and Freddie Mac at extremely low interest rates forcing other buyers to either buy the bonds at the same rate or find other means of earning a profit on their funds.
Those that can are forced to go into the stock market, which is why the market has been moving higher and making new historical highs daily. By announcing this exit, the fed sent stocks tumbling down over 353 points in a single day due to worries regarding higher interest rates, which are not good for stocks because of higher financing cost for corporations. Higher cost affects their profits. Some investors though, have suffered due to the fed policy of low interest rates because they have to buy artificially low interest rated government bonds. Some of these are federal, state and municipal retirement pension funds.
With the fed exiting the market and targeting the 7% national unemployment rate as a benchmark of success for the quantitative easing program, Mr. Bernanke is essentially leaving black unemployment at double-digit rates for the near future. As stated, the current national unemployment rate for May is 7.6%.
Historically black unemployment rates are generally always almost double that of white unemployment rates. White unemployment for May is 6.7%, while black unemployment is 13.5%. Among black males, the May unemployment rate is 13.5% versus that of white males, which is 6.4%. The Federal Reserve is essentially saying, it is up to the President and Congress to come up with a national job creation program.
With the immigration bill making its way through Congress, blacks are in for some tough times; a lot more tougher then even the most informed critics have predicted! If the immigration bill passes as anticipated by the end of the year, blacks as well as whites will find themselves in competition for available jobs with “the newly legal” Spanish-speaking immigrants. Many blacks however will be competing at the lower end of the job market in terms of skills, where the newly legal Hispanics are more prolific.
Now, more then ever, blacks as a political pressure group (if they have any common sense) need to put pressure on this president to bring a national job
creation plan to the table ( http://www.sslumpsum.com ). They have an obligation to themselves and their children, who are in the job market. Blacks may want to bury their head in the proverbial sand ignoring this new development; however, it will be a mistake. What politicians do and do not do in Washington affect all our lives. African Americans have to get involved and get involved now!
They must not let Mr. Obama run away from the truth of their horrible situation and demand that he put a national job creation plan on the table. Based on this news, it looks like things are only going to get worst for blacks, as they will be the first in line to feel the pain of the Federal Reserve Bank’s decision with none of the benefits.
Staff Writer; James Davis
More information about JD and his Deficit Neutral Stimulus Plan Can be founded at http://www.sslumpsum.com.
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