Great Depression and
"Irving Fisher, advocated the stamp-scrip
(demurrage) system as the way out of the Great Depression: "The correct
application of stamp scrip would solve the depression crisis in the US in three
Other economists agreed, but pointed out to Treasury
Undersecretary Dean Acheson possible decentralizing political
Roosevelt responded by banning all emergency
currencies, choosing instead the centralized solution of the
New Deal." -
Tax exempt foundations begin pushed the
1928 FDR selected
governor of New York.
Many of the worst banking scandals occur under
"In practice, the Federal
Reserve Bank of New York became the fountainhead of the system of twelve
regional banks, for New York was the money market of the nation.
other eleven banks were so many expensive mausoleums erected to salve the local
pride and quell the Jacksonian fears of the hinterland.
Benjamin Strong, president of the
Bankers Trust was selected as the
first Governor of the Federal Reserve Bank
of New York.
Adept in high finance, Benjamin Strong for many years
manipulated the country's monetary system at the
discretion of directors
representing the leading New York banks.
Under Benjamin Strong, the
Reserve System was brought into interlocking relations with the
Bank of England and the
Bank of France.
Strong held his position as Governor of the Federal Reserve Bank of New York
until his sudden death during a Congressional investigation of the secret
meetings in 1928 between Reserve Governors and
heads of European central banks
which brought on the Great Depression of 1929-31." - Ferdinand
October 29, 1929
Share prices on the New York Stock Exchange
Milton Friedman and Anna
Jacobson Schwartz argue in, "A Monetary History of the US," the single
biggest cause of the Great Depression was that the
let the money supply fall by
one-third, causing deflation.
"Let me end my talk by
abusing slightly my status
as an official representative
of the Federal Reserve. I would like to say to Milton and Anna: Regarding
the Great Depression. You're right, we did it." -
Ben Shalom Bernanke, 2002 birthday tribute
to Milton Friedman
Banks are allowed to fail in the same way that
Lehmann Brothers was allowed to fail
September 15, 2008 causing a credit crisis.
"It was not accidental. It
was a carefully contrived occurrence. The
international bankers sought to
bring about a condition of despair here so that they might emerge as rulers of
us all." - Louis T. McFadden
1931 Gerald Swope, an avid reader of Edward
Mandell House, presents a proposal for recovery, the "Swope Plan".
becomes Roosevelt's "New
Backed by the same industrialists the New Order of Adolf
Hitler is the same as Roosevelt's New Deal - plans for
Gerard Swope*, Owen Young, and A. Baldwin of General Electric
in the US were directors of AEG.
General Electric helps finance the
offices of General Electric
are at 120 Broadway, New York.
When FDR is working on Wall Street, his
address is 120 Broadway.
The Roosevelt Warm Springs Institute for
Rehabilitation and the Franklin D Roosevelt Foundation is located at
The most prominent financial backer of an earlier
Roosevelt Wall Street venture from 120 Broadway is Gerard Swope of
"The smart thing to do would be to go off the Gold Standard a
little farther than England has done." - Henry Agard Wallace, January 31,
Roosevelt takes office, defaults on the debt and takes the US off
"By February 19, gold withdrawals from banks increased
from five to fifteen million dollars a day.
In two weeks $114,000,000
of gold was taken from banks for export and another $150,000,000 was
withdrawn to go into hiding.
The infection of fear was everywhere.
Factories are closing.
Unemployment is rising rapidly.
Bank closings multiplied daily."
- John T. Flynn
Gold confiscation order pays Americans $20.67 an
The world price of gold has been set since 1810 in the private
bank of NM Rothschild & Sons in London, at 11:00 a.m., on a daily basis.
Paul Warburg and his partners put their money into
gold at $20.67 before the
stockmarket crash and ship it to London.
The official price of gold is
then raised to $35 per ounce.
They then ship it back and sell it to the
US Government for the new higher price of $35 per ounce for a profit of $14.33
on every ounce.
(Baron David de Rothschild withdrew NM Rothschild from
the gold market in 2005 shortly after this posting.)
Americans with gold were paid $20.67 per ounce
and those that refused to surrender their gold were given a ten year prison
To store the confiscated gold
Fort Knox is built.
German General Electric (Deutsche
Edison-Gesellschaft für angewandte Elektrizität) is a prominent
financier of Adolf Hitler and the Nazi Party both directly and indirectly
Electric in New York is a major participant in the ownership and direction
of both AEG and Osram.
"I regard the condition of the country the most
serious in its history. The mere talk
of inflation retards business. If you start talking about that you would
not have a nickel's worth of gold in the Federal Reserve the day after
tomorrow." - Bernard
Baruch, February 11, 1933
"One of the key Roosevelt advisors is
Bernard Baruch, a power in
the Wilson Administration." - Jewish Examiner of Brooklyn, October 20,
Climax with the enactment
of the National Industrial Recovery Act in the first 100 days of
Hugh S. Johnson, Raymond Moley, Donald Richberg, Rexford
Tugwell, Jerome Frank, and Bernard Baruch - key Roosevelt advisors - claimed
unrestrained competition caused the Great Depression.
They claimed the
government had a critical role to play through national planning, regulation,
the fostering of trade associations, support for "fair" trade practices and
support for "democratization of the workplace".
The New Deal -
a program of central control,
corporatism - is accepted
by the American people as a viable
alternative to the rugged
individualism of early Americans.
a disastrous legacy of
agricultural subsidies and seeks to cartelize industry.
was a crime against our civilization to pay farmers in two years $700,000,000
to destroy crops and limit production.
It was a shocking thing to see the
government pay one big sugar corporation over $1,000,000 not to produce
sugar." - John T. Flynn
Roosevelt took steps to strengthen unions
and to keep real wages high.
This helped workers who had jobs, but made
it much harder for the unemployed to get back to work.
One result is
unemployment rates remained
high for the duration of the New Deal period.
Herbert Hoover and continuing
with Roosevelt, the federal
government increases income taxes, excise
taxes, inheritance taxes, corporate income taxes, holding incorporation taxes
and "excess profits"
The New Deal, "new economic order," is not a creature of
classical liberalism but a
creature of corporate socialism or corporatism.
Big business, as
reflected in Wall Street, strived for a state order in which they could
control industry and
This is the core of the New Deal.
one knows who was responsible for the gold confiscation order.
Congressman ever claimed having written it, Franklin Delano Roosevelt stated he
had not written it, nor had he even read it.
Secretary of the
Treasury, William H. Woodin, claimed he'd never read it either. It was, he
stated, "What the experts
Retired Marine Corps Major General Smedley Butler testifies before
the Congressional McCormack-Dickstein Committee that
Wall Street bankers
including Guaranty Trust director Grayson Murphy,
Remington Arms, and other
interests are plotting to create
a fascist veterans'
organization with Butler as its leader to use in
a coup d'état to overthrow
1935 Supreme Court unanimously
declared the National Recovery
The National Recovery
Administration is headed by Hugh Johnson a business associate of
Bernard Baruch - a
financial supporter of Red Zionism.
The National Recovery
Administration allowed industries to create "codes of fair competition"
set minimum wages and maximum weekly hours while also allowing industry heads
to collectively set minimum prices.
"The National Recovery
Administration worked by fostering giant cartels, which made products
artificially expensive and punished small business trying to compete against
big business. The
general lesson is that government sponsored cartels don't help the economy as a
whole. " - Robert P. Murphy
FED increased reserve requirements for banks, thereby curbing
lending and moving the economy back to dangerous deflationary pressures.
Henry Wallace becomes Secretary of Agriculture in Roosevelt's
Wallace orders the slaughtering of pigs and
plowing up of cotton fields in
rural America to drive up the price of these commodities.
American fascist would prefer not to use violence. His method is to poison the
channels of public information." - Henry Agard Wallace
September 2, 1939 Whittaker Chambers informs Adolf
Augustus Berle, Jr. that several senior government officials, including Alger
Hiss are members of a Soviet "apparatus" designed to influence US policy and
pass classified documents and information to the Soviets.
Berle, Jr. told Chamber's that he and journalist, Isaac Don Levine, met with
Roosevelt and conveyed what Chambers told them, but Roosevelt unequivocally
refused to take any action.
Alger Hiss remains at the State
Department throughout WWII in positions
as Roosevelt's principal adviser on Soviet affairs at the
Yalta conference, as a
delegate to the Dumbarton Oaks Conference and as Secretary General of the San
Francisco conference establishing the United Nations.
1941 Roosevelt names Henry Agard Wallace chairman
of the Board of Economic Warfare (BEW) and of the Supply Priorities and
Allocations Board (SPAB).
1944 Henry Agard
Wallace is wined and dined in Siberia by Sergei Goglidze and Dalstroi director
Ivan Nikishov, both NKVD
Henry Agard Wallace becomes
a staunch supporter of the Soviet
Wallace is endorsed by the Communist Party
Subsequent refusal to publicly disavow any Communist support
costs him the backing of anti-Communist liberals in the 1948 presidential
"I reached a
conclusion, under no circumstances, have any business dealings with him." -
Henry Agard Wallace after getting
to know FDR
"The outright ownership of farms ought to be
Under intelligent state control it should be
possible to introduce a planned flexibility into the congestion and rigidity of
our outmoded system." - Rexford Tugwell Undersecretary of Agriculture
"I know of no severe depression, in any country or
any time that was not accompanied by a sharp decline in the stock of money, and
equally of no sharp decline in the stock of money that was not accompanied by a
severe depression." - Milton
May 2007 Federal Reserve reports assets of
about $836 billion, 92% of them are the marketable securities.
spring of 2008 the values of
marketable securities had dropped to $500 billion
and total asset value had remained level until September of 2008.
September 2008 The
Federal Reserve allows the Monetary
Base to increase from $836 billion to $1,479 billion.
December 2008 95% of the Federal Reserve "assets" are toxic collateralized debt
December 16, 2008
Federal Reserve cuts interbank lending rate to a range of 0% to
"The banks have exchanged $2 trillion in toxic debt consisting
of Asset-Backed Securities in sub-prime mortgages,
stocks and other high-risk credits in exchange for cash and US Treasury bonds.
The Federal Reserve is holding some
$2 trillion in toxic debt.
release of information is opposed as that
might signal 'weakness'
and spur short selling or a
run by depositors.
Federal Reserve does not want to discuss this.
That is clearly also
behind their blunt refusal to reveal the nature of their $2 trillion assets
acquired from member banks and other financial institutions.
put, were the Fed to reveal to the public precisely what 'collateral' they held
from the banks, the public would know the potential losses that the government
may take." - F. William Engdahl 12/17/08
The interest tab to finance
expenditures is $412 billion in fiscal year 2008, or about one-third of the
federal government total income from personal income taxes which was $1,220
Fed Open Market Committee authorized $300
billion in purchases of long term treasury bonds for six months.
central bank's latest efforts may help swell its balance sheet to more than $4
trillion this year." - Scott Lanman, March 25, 2009
Federal Reserve, like other regulators
around the world, did not do all that it could have to constrain excessive
risk-taking in the financial sector in the period leading up to the crisis." -
Ben Salom Bernanke Sunday, November 29,
January 2009 Federal Reserve reports assets
of $2.1 trillion, an increase of $1.2 trillion from September 2008.
That represents loans worth $1.2 trillion - a startling increase more
than doubling the size of the Monetary Base during the last quarter of 2008.
Ben Gisin, a former banker tracking statistical releases, says he has
never seen anything like it.
Fungible assets magically
appeared on the balance sheet of the Federal Reserve.
Reserve is paying out roughly $400 million a year for "research" - much of it
to outside economists who then advocate for the Federal Reserve agenda
without disclosing their Federal Reserve ties.
Seven of the eight
economists on a 2009 anti-oversight letter to Congress failed to note they are
or were on the payroll of the Federal Reserve.
The Federal Reserve "so
thoroughly dominates the field of economics that real criticism of the central
bank has become a career liability for members of the economic
"To understand the real cause of the credit crisis
and how it can be reversed, we first need to understand credit itself what it
is, where it comes from, and what the real tourniquet is that has limited its
Banks actually create credit; and if private banks can do it, so
could public banks or public treasuries.
The crisis is not one of
"liquidity" but of "solvency."
It has been caused, not by the
banks' inability to get credit (something they can create with fungible
accounting entries), but by their inability to meet the capital requirement
imposed by the Bank for International
Settlements, the private foreign head of the international banking
What actually constrains bank lending is the capital adequacy
requirement, something that is imposed not by our own central bank but by the
Bank for International Settlements.
Called "the central bankers"
central bank, the BIS pulls the strings of the private international banking
system from Basel,
Switzerland." - Ellen Brown
"The Federal Reserve
does not need slinky women in plunging necklines to peddle money.
it needs is low interest rates.
When rates are pushed lower than the
rate of inflation, the Fed provides a subsidy for borrowing.
offered to give you $1.00 for every 90 cents you gave me in return, you would
buy as many dollars from me as you could.
The Fed operates the same
It generates market activity by
creating incentives for
Borrowing leads to
speculation, and speculation leads to
steadily rising asset
prices or asset price inflation.
The Fed is not an
unbiased observer of
free market activity.
The Fed drives the market by
and controlling investment behavior by fixing interest rates.
The Fed IS
the market, which is
why it is foolish to talk about a "recovery".
The idea of recovery
implies a free-standing system based on supply and demand.
line, is that the current financial architecture is not designed to work; it is
designed to make a handful of speculators very rich.
own congress, the White House and
media, which is why there has been no meaningful change in regulations." -
"The Federal Reserve will ask
a US appeals court to block a ruling that for the first time would force the
central bank to reveal secret identities of financial firms that might have
collapsed without the largest
government bailout in US history." - David Glovin 01/11/10
Information Act requires federal agencies to make government documents
available to the press and public.
US District Judge Loretta Preska
notes in her August 24, 2009 ruling that loan records are covered by Freedom
of Information Act and rejected the claim that their disclosure might
harm banks and shareholders.
"The Fed speculates on how a borrower
might enter a downward spiral of financial instability if its participation in
the Federal Reserve lending programs were to be disclosed. Conjecture, without
evidence of imminent harm, simply fails to meet the board's burden of proof." -
US District Judge Loretta Preska
In its appeal, the
Board of Governors of the
Federal Reserve System argued that
disclosure of "highly sensitive" documents, including 231 pages of daily
lending reports, threatens to stigmatize lenders and cause them "severe and
irreparable competitive injury."
"The stock of money, prices and output was
decidedly more unstable after the establishment of the Federal Reserve than
before."The outbreak of the current crisis and its
spillover in the world have confronted us with a long-existing but still
unanswered question, i.e., what kind of international reserve currency do we
need to secure global financial stability and facilitate world economic growth,
which was one of the purposes for establishing the International Monetary Fund?
Any system which gives
so much power and so much discretion to a few men is a bad system. "
- Milton Friedman
There were various institutional arrangements in an attempt to find a
solution, including the Silver Standard, the Gold Standard, the Gold
Exchange Standard and the Bretton Woods system.
The above question,
however, as the ongoing financial crisis demonstrates, is far from being
solved, and has become even more severe due to the inherent weaknesses of the
current international monetary system.
Theoretically, an international
reserve currency should first be anchored to a stable benchmark and issued
according to a clear set of rules, therefore to ensure orderly supply; second,
its supply should be flexible enough to allow timely adjustment according to
the changing demand; third, such adjustments should be disconnected from
economic conditions and sovereign interests of any
The acceptance of credit-based national currencies as
major international reserve currencies, as is the case in the current system,
is a rare special case in history.
The crisis again calls for creative
reform of the existing international monetary system towards an international
reserve currency with a stable value, rule-based issuance and manageable
supply, so as to achieve the objective of safeguarding global economic and
Issuing countries of reserve currencies are
constantly confronted with the dilemma between achieving
their domestic monetary policy goals and meeting other countries' demand for
one hand, the
monetary authorities cannot simply focus on domestic goals without carrying out
their international responsibilities, on the other hand, they cannot pursue
different domestic and international objectives at the same time.
may either fail to adequately meet the demand of a growing global economy for
liquidity as they try to ease inflation
pressures at home, or create excess liquidity in
global markets by stimulating domestic
The Triffin Dilemma, i.e., the issuing countries of reserve
currencies cannot maintain the value of the reserve currencies while
providing liquidity to the world, still
The frequency and increasing intensity of financial crises
following the collapse of the Bretton Woods system suggests the
costs of such a system to the world may have exceeded its benefits.
Bretton Woods International Monetary System
The desirable goal of
reforming the international monetary system is to create an international
reserve currency that is disconnected from individual nations and is able to
remain stable in the long run, thus removing the inherent deficiencies caused
by using credit-based national currencies.
International Monetary Fund
creates the Special Drawing Rights when the defects of the Bretton Woods system
initially emerge to mitigate the inherent risks sovereign reserve currencies
A super-sovereign reserve currency managed by a global
institution can be used to both create and control global liquidity.
When a country's currency is no longer used as the yardstick for
global trade and as the benchmark
for other currencies, the exchange rate policy of the country would be far more
effective in adjusting economic imbalances.
This will significantly
reduce the risks of a future crisis and enhance crisis management capability.
Special consideration should be
given to giving the Special
Drawing Rights (SDR) a greater role.
The SDR has the features and
potential to act as a super-sovereign reserve currency.
increase in SDR allocation would help the Fund address its resources problem
and the difficulties in the voice and representation reform.
efforts should be made to push forward a SDR allocation.
The scope of
using the SDR should be broadened, so as to enable it to fully satisfy the
member countries' demand for a reserve currency.
The SDR, which is now
only used between governments and international institutions, could become a
widely accepted means of payment in international trade and financial
The allocation of the SDR can be shifted from a purely
calculation-based system to a system backed by real assets, such as a reserve
pool, to further boost market
confidence in its
Entrusting part of the member countries' reserve to the
centralized management of the IMF will not only enhance the international
community's ability to address the crisis and maintain the stability of the
international monetary and financial system, but also significantly strengthen
the role of the SDR.
With its universal membership, its unique mandate
of maintaining monetary and financial stability, and as an international
"supervisor" on the macroeconomic policies of its member countries, the IMF,
equipped with its expertise, is endowed with a natural advantage to act as the
manager of its member countries' reserves." - Zhou Xiaochuan, governor of the
People's Bank of China 03/23/09
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author feels that the falsification of reality outside personal experience has
forged a populace unable to discern propaganda from reality and that this has
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corporate cartel through their agents who wish to foist a corrupt version
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philosophy named The Truth of the Way of the Lumière Infinie - a
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faith, accepts no tithes, has no supreme leader, no church buildings and in
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This web site in no way condones violence. To the contrary the
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American social mores and values have declined precipitously over
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through corporate media by pressing emotional buttons which have been
preprogrammed into the population through prior corporate media psychological
operations. The results have been the destruction of the family and the
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