THE STOCK MARKET CRASH AND GREAT DEPRESSION
The Federal Reserve Board met on May 18, 1920, to plan the depression. Large banks began calling in loans, causing stocks to plummet from a high of 138.12 in 1919, to a low of 66.24 in 1921. When the value of government bonds dropped, they were forced to call in even more loans. When thousands of banks’ customers couldn’t pay their loans the banks seized their assets. After 1922, profits rose, and with the Federal Reserve’s ability to lend out ten times their reserves, credit was easily available. From 1923 to 1929, $8 billion was taken off the deficit. The Reserve expanded the money
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supply by 62% and this excess money was used to bid the stock market up to enormous heights. The media began publicizing that there were large profits to be made on the stock market. This push was planned at a meeting of the International bankers in 1926, who made the boom possible, and who were going to bring about the financial disaster later on.
On October 24, 1929, the New York bankers began calling in their loans, forcing their customers to sell off stocks at rock bottom prices in order to pay off their loans. Stock prices fell by 90% and U.S. Securities lost $26 Billion. Thousands of smaller banks and insurance companies went bankrupt, and people who had been millionaires, were now broke. To prolong the depression after the crash, from 1929 to 1933, the Reserve began to reduce the money flow by one-third. Minor ‘depressions’ were created in this way in 1937,1948,1953,1960,1966,1970 and 1979.
In his book “My Exploited Father-in-Law” by Curtis Dull (son-in-law of Franklin D. Roosevelt) wrote- “The depression was the calculated ‘shearing’ of the public by the World Money Powers, triggered by the planned sudden shortage of supply of call money in the New York money market…. The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the United States via the creation of the privately owned Federal Reserve Bank.”
Franklin Delano Roosevelt to the Congress, April 29th, 1938.
“The Liberty of a democracy is not safe if the people tolerate the growth of a private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is Fascism—ownership of government by an individual, by a group or by any controlling private power.”
Congressman Charles Lindberg in an address to the United States Congress in 1921 said “Under the Federal Reserve Act, panics are scientifically created. The present panic is the first scientifically created one, worked out as we figure a mathematical equation.”
In the United States today 97% of all money is digital and 3% is cash over the last 93 years the United States dollar has devalued 96%.
RESTORE GLASS-STEAGALL
Glass-Steagall. Mean anything to anyone? Probably not. Glass-Steagall was enacted on the 16th June, 1933 buy American President Franklin Delano Roosevelt. To rein in the Wall street / City of London Bankers who had caused The Great Depression. It was enacted to facilitate President Roosevelt’s infrastructure-led recovery program. It established a firewall to protect the financial functions of banking that were necessary to the daily lives of the American people. Under Glass-Steagall, commercial banks which held deposits were protected by the Federal Deposit Insurance Corporation. (FDIC) the savings accounts, chequing accounts, and business trading accounts were forbidden from owning, or being owned by Wall St. investment banks. Under Glass- Steagall the Wall St investment banks were denied any access to the enormous deposit base of the American people. In 1999 under the threat of impeachment President Bill Clinton repealed Glass- Steagall and Wall St finally got access to the commercial banks and their deposits, and all forms of speculation expanded exponentially. For 66 years it had acted as a Firewall against the precise Wall st /City of London speculation which has caused the current Global Financial Crisis. In August, 1971, Richard Nixon took the United States dollar off gold. That ended the fixed exchange rate Bretton Woods system, and opened the door for unbridled
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speculation in currencies and other financial instruments such as colaterized debt obligations, derivatives etc,etc. As investment drained out of the real physical economy of agriculture, industry, and infrastructure into speculation on stock-markets .The financial shocks came one after another in succession. These included: The October,1987 U.S. stock market collapse, the greatest ever; near collapse of the global financial system in 1997-98 with the Asia-Russian bond, and LTCM hedge-fund crisis; the mortgage crisis which erupted in August 2007, still ongoing the near global crashes in 2008 and 2009, averted only when the U.S. and European governments bailed out the banks with an estimated $30-40 trillion. The eruption of the euro-zone crisis Portugal, Ireland,Italy,Greece,Spain and now Great Britain, Japan, Iceland and America. Thank god Australia is alright or are we? Of the total $1.23 trillion foreign debt owed by Australia, over $800 billion is owed by Australia’s banks, and over $440 billion of that is on 90 day terms. Most of this short term debt is from the carry trade. It cannot be repaid, so it is constantly rolled over with new borrowing from the carry-trade. Australia’s four major banks hold the major share of the $14.2 trillion derivatives exposure of the Australian banking system in 2009.And in 2010 it had blown out to $15.195 trillion. They were suckered in like everybody else.
The Cantwell- McCain amendment introduced into the U.S. Senate on 6th May,2010 as an amendment to the “Financial Reform Bill” would prohibit commercial banks from affiliating in any manner with investment banks and prevent directors, officers and employees of a commercial banks from working in investment banks and vice-versa Sen. John McCain said “Its time to put a stop to the taxpayer-financed excesses of Wall St.”
Governments have “solved” each crisis by pouring taxpayers money into bailout the private banks, but each bubble only created a larger, even more explosive bubble for the next round.” The World is headed for financial collapse unprecedented in size and scope.. The City of London and Wall St. will ensure, that this happens just as they did back in Jack Lang’s time. Its time to put people first before a flawed, immoral, unfair and unjust financial system.” Enact Glass-Steagall now.”

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