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November 28, 2008
Source: Human Events.com
Source: The New York Times.com
Was the Great Depression a monetary phenomenon?
That New New Deal
The media-Scribes were on the case of the big three auto execs the other day. They had the audacity to fly on three separate private jets to Congress to testify.
If they had "jet-pooled" together on one jet, the same media-Scribes would have been all over their case for collusion. Never was the monolithic UAW ever accused of collusion among all three car companies, either by the Congress which protected them from market forces, nor from the media-Scribes that once loyally championed their cause. Somehow, the demise of Detroit is all the fault of the current three executives.
Also routinely being on the receiving end of chastisement from the media-Scribes are successful Exxon-Mobil executives from Dallas, Texas.
Deemed evil for America are cars and the gasoline they need to move. Imagine American citizens choosing to buy big SUVs, as a second choice to riding bicycles or taking a government provided light-rail.
Rarely do you hear such ridicule among the Jewish media-Scribes about the "too-big-to-fail Sadducee financial execs. Why, they are treated as half-way respectable citizens.
This utter hatred for one of the last commercial industries left in America sort of shows us why we are in the situation we are in doesn't it? Our last remaining businessmen are probably feeling like the businessmen under FDR:
"economic royalists" who had, he claimed, depressed wages, fixed prices, and conspired to keep all of the nation's wealth in their own greedy hands. FDR's war on businessmen (which featured not just rhetorical but actual criminal prosecutions) spread fear and timidity throughout the entrepreneurial sector.
"The New Yorker magazine's cartoons of the plump, terrified Wall Streeter were accurate; business was terrified of the president. But the cartoons did not depict the consequences of that intimidation: that businesses decided to wait Roosevelt out, hold on to their cash, and invest in future years."
Total money supply increased 66%
[From 6 billion to 10 billion in 5 years]
Total money supply increased 60%
[From 750 billion to 1,200 billion in 5 years]
Total money supply has increased almost 20,000% since 1929 !!!
The man who should be our President, Pat Buchanan, rightfully goes over the standard litany -- We tax too much, spend too much and make too little goods for all that taxing and spending. Lost in all of this is the impact of the Federal Reserve.
Next year, 2009, to be heralded by the media-Scribes as the beginning of the reign of Obamalot, the Chinese will be saying to themselves;
Few outright own their homes today. Many of us are having to lease a car -- never to own one. Credit cards get us by month-to-month. Who has the luxury of a stay-at-home wife anymore? She also has to work. Businesses are hollow-shell companies who do not make anything themselves, but are just marketing companies for the Chinese goods.
Could the Federal Reserve be the one sapping our ability to earn a living and provide for our families?
Paul Krugman does not believe this. Krugman believes that the Federal Reserve is doing a bang-up job and should not be dumped on.
I like the following explanation of the role of the Fed in the Great Depression much better:
I too have heard that the Federal Reserve was responsible for the Great Depression, but it has nothing to do with anything said by monetarist Milton Friedman.
Are you familiar with the book “Economics and the Public Welfare: A financial and Economic History of the United States, 1914-1946″? It is by Benjamin M. Anderson, and was originally published in 1949. His history matches up fairly well with the theories of Ludwig von Mises, a teacher to both Frederick A. Hayek and Alan Greenspan.
According to Anderson’s history, there had been a large expansion in the Federal Reserve System during World War I, and with increased size came increased expense. Banks purchased government securities in order to keep up total earning assets. This would have been about 1920-3, if I remember correctly. However, this increased reserve balances of member banks which they used in the process of paying off their debt to the Federal Reserve banks. As such there the credit supply rose and interest rates fell — simply as an unintended byproduct at the time.
However, inflating either the money or credit supply necessarily affects the economy unevenly. There is the point of entry, where the money actually enters the economy and products are bought with it — leading to increased, artificial demand for those products which has not been paid for by increased production, but which competes which demand that is paid for by existing production — leading to a distortion in the price system.
In the case of inflating the credit supply, the distortion in the price system consists first and foremost of artificially lowered interest rates — which make long-term investments appear less expensive relative to short-term investments. Mal-investment ensues — which will be uncovered as mal-investment once interest rates rise back to their natural level — as determined by supply and demand.
Benjamin Anderson notes that, “A Chase Economic Bulletin of March 27, 1923, protested against the artificially generated expansion of bank credit as masking the underlying shortage of real capital which four years of war and four more years of disorganization after the war had brought about, and urged that higher interest rates be called for, both to increase the volume of savings and to make sure that the capital that was created would be used for the most important purposes. The tendency to substitute bank credit for real capital was looked upon as a very ominous tendency.” Nevertheless, the Federal Reserve System expanded the credit supply again in 1924, and then to an even greater degree in 1927, ending in 1928. (See Chapter 11: The Money Market, 1920-23– Renewed Bank Expansion.)
It appears that the Great Depression of 1929 was to some extent anticipated as a likely result of the continued policy of artificially expanding the credit supply. However, those warnings were unheard, and the result is now history.
Few understand the level of disaster about to befall us.
The Great Depression saw an America that was self-sufficient in everything. All Americans either lived on farms or had parents who lived on farms; meaning, someone in your family had land and knew how to grow food. Our Federal government was not in debt. We were still on the gold standard. We were still moral and so as Christians, we helped our fellow man.
How well will we bode this time?
Our treasonous Republican Neo-Cons have made us dependant upon most of our energy and our manufactured goods from overseas. Even this week, President Bush is warning Americans to not give up on "free trade", as if that is not part of how we got in this predicament.
At home, most of us are dependant upon federal jobs, federal military jobs, federal social security, federal college grants, federal food stamps, and now federal unemployment.
The federal government is reassuring us that they can fix our economic problems, as if we wondered how the country got through all other bank panic prior to the creation of the Federal Reserve, just before we had a bank panic we could not handle (sic) in the 30's. I believe we are supposed to say, "Thank God the Federal Reserve was created and established just before the Roaring 20's and was there to help us out of the Great Depression during the not-so-roaring 30's. (I say this tongue in cheek, as the Fed caused both of these economic maladies. First, the Fed paid for the first World War with Fed money, then the Fed provided the easy money of the 20's, then the Fed reigned money in giving us the not-so-easy money of the 30's with more Fed control, only to finally drag us into yet another World War financed by Fed money, and creating a World government with Fed money being fed into the IMF and World Bank.)
For this economic upheaval, this time we have a totally fiat money system, not backed by one once of gold, and the Fed is on a collision course to hyper-inflate the American dollar, like the Wiemar Republic. Can we say, "Heil Comrade Obama! Please give us more Ameros."
FDR did nothing for the economy
Lets get this right, socialist FDR did not do a thing to fix our economy. He so terrorized and characterized the businessman as evil, that they just sat on their money waiting out the FDR administration. They did not want jail time for engaging in capitalism. Instead, FDR tried to manage a central command economy and never once reduced unemployment below 14%.
Treasury Secretary Henry Morgenthau. Testifying before the House Ways & Means Committee in May of 1939, the FDR ally and acolyte
Embedded in comments to Pat is this gem which needs no editing:
No more Jews running anything in this country.
No more Jews running our financial institutions - not in charge of the money supply, not heading important Congressional committees, not broadcasting strange lies to our populace through the media night and day like sewage.
There had been a strong inner-need in all too many of them to subvert the nations among whom they live and the institutions of those nations.
They have conspired at every level to tear down every semblance of Christianity and have weakened the psyche and integrity of the American People.
We have allowed them to educate our children into hatred for our country and into ignorance of it's history and founding principles, they have helped estranged the populace from their Godly ways.
They seem to bring woe to the nation that allow them to rule over them.
They have divided loyalty at BEST.
They have been instrumental in bringing down America. Americans have been all too eager to participate in these corruptions.
So God bless them, may they never be persecuted - but keep them out of authority positions in society or they will make you slaves on the lands that were our Fathers.
Lets turn back to God and our Constitution and take this country back from everyone that would enslave us.
--William, of Pensacola --Responding to Pat Buchanan's article
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