A look at The Great Depression in the context of the current economic crisis.

A look at The Great Depression in the context of the current economic crisis.
By Danny Panzella
July 12, 2009

Today’s lesson: The Fed Reserve prints money, and then lends it to the US at x amount of interest. So every $1 is really $1+Interest. Obama says...I’m going to print as much money as I need to solve the econocrisis (paraphrased) so Obama spent 787 Billion on Stimulus 1.0 + Interest. Why are the powers that be intentionally bankrupting the country? For the answer take a look at "The Great Depression."

In 1921 Congressman Charles Lindbergh said:
“Under the Federal Reserve Act, panics are scientifically created. The present panic (Panic of 1920) is the first scientifically created one, worked out as we figure a mathematical equation.”

During the 1920’s a new type of loan called a “Margin Loan” surfaced. A Margin Loan was a loan that allowed an investor to put down only 10% of any stock’s worth with the other 90% of the stock’s cost being loaned through the broker.

The Margin Loan grew in popularity in the 1920s, creating a lot of wealth in the population. For that reason the term the “Roaring 20’s” was coined. This went on for a few years; the country’s economic system was prospering and generating wealth. Well the margin loan had a detonator button. A 24 hour repayment period if the loan was called due.

A few months before the stock market crash of 1929 a handful of the largest investors in the world including the Rockefellers, quietly sold off their stock investments. Then the financiers of the margin loans “randomly” called them due.

What resulted was an insane sell-off in the market and mass bankruptcies and mass withdrawals that caused 16,000 banks to close. What does the Federal Reserve do during this time? They buy up all the banks and other corporations for pennies on the dollar. Good deal! (Sound familiar?)

In an attempt to allegedly mitigate the econocrisis the government decided to abolish the gold standard under the pretext “helping to end the Great Depression”, which required all citizens to turn in their gold bullion to the National Treasury under penalty of 10 years imprisonment. Essentially robbing the population of what little wealth they had left, effectively making all the people that caused the Great Depression richer and even more powerful.

Think about it. The world’s wealthiest families have control of the financial system. They allow the population, a whole country to generate wealth for them. Then based on some “event” (A market crash, “bank run” etc. they repossess it through confiscatory taxation and by causing market crashes and deflations which flows the money right back into their coffers. The event is necessary to gain the compliance of the populace of the United States.

So let’s look at current events to see what the FED is up to today. Well they just lent Obama 787 Billion dollars. (You didn’t think the gov't had that money did you?) 787 Billion dollars + Interest. The American people are becoming savvier, so the “event” has become more intricately planned. After 9/11 we experienced a short recession. The population became depressed and afraid of another terrorist attack. So to make the population feel safe we go to war with terrorists (Borrowing more money from the FED to finance the war; the other way the Federal Reserve and its owners gain more wealth. This is a topic for an entirely different post, but in short: When the U.S. goes to war we borrow the money from the Federal Reserve (Of course, they control all the money, to even have one dollar you must borrow it from the FED with interest. Google the term: False Flag Operation.)

When is the best time to attack your enemy? The answer: when they are confused, disorganized and fearful. Their fear will cause them to act irrationally and in emotion driven ways. The FED lowers interests rates which stimulated the housing market (Don’t forget the “internet bubble” had just burst, so investors were already beginning to move their money out of the stock market and into the housing sector. Coincidence? Did the powers that be prepare the collective psyche of investors by creating the internet bubble?) The housing boom begins, a buying frenzy fueled by low interest rates drives up real estate values. Bankers begin introducing new and risky mortgage products into the marketplace. (Remember I said a confused and fearful public will act irrationally?) Subprime mortgages boom as people buy homes they can’t afford with ticking time bomb adjustable rate mortgages that are set to adjust to a higher rate 3,5, or 7 years later (Presumably after the housing boom is over and the market is in decline. Conventional wisdom says that the housing cycle is 7 – 12 years.)

While the boom is happening the banks want to cash in so they need to find ways to lend more money. So they decide to “securitize” these subprime loans. Basically making them into a large investment instrument and selling it to investors. So let’s think about this, they took risky loans and sold them to investors. Why would an investor want to buy a package of millions of loans that have a high probability of defaulting? Because they were insured by the United States Government! That’s why! In a sense these investment packages were laundered through the government through Fannie Mae and Freddie Mac. Who took bought the packages from the banks, stamped them as grade A investments and then sold them to investors who were thrilled to buy “safe” government insured investment products. (Do you think the government had the money to insure all of those loans when they went bad? We now know that answer.)

So companies like AIG take the insurance premiums they are paid by their customers and invest them to make a profit. (In case you didn’t know, that is the main purpose and income stream of an insurance company. It’s not to insure you against hardship. It’s to take your premiums and invest it for a profit. ) So AIG invests in one of these Government insured, grade A investments. The investment fails and guess what? AIG is now in trouble along with thousands of other companies like Chrysler, GM, hundreds of banks etc.

The gov’t says we can’t have the largest insurance company in the world go belly up! People will lose their jobs!! (Another “event”) So the American people agree that we can’t let so many people lose their jobs! Give them TARP!! And the bailouts begin. Which brings me full circle to Stimulus 1.0. (With the possibility of a Stimulus 2.0 on the way.)

We are now indebted to the Federal Reserve Bank in such a way that we can never repay it. One last note: Your federal income tax dollars are used solely to pay the interest we owe the Federal Reserve. The ONLY answer is to continue to raise taxes, until the FED steals all of our wealth, and property. (What happens when people can’t pay their taxes? The gov’t repossesses their land.) So in the context of what was discussed in this article lets think about the implications of the following initiatives currently happening in congress:
• The Climate Bill AKA Cap and Trade AKA Tax and Kill: Basically an energy tax which will drive up prices of every single product it takes energy to produce. More disguised taxes to continue to confiscate the property of Americans.

• The Patriot Act and other subsequent bills that are taking away the rights of Americans. For instance, the president has the right to declare a state of emergency for no defined reason. This gives him powers to enact martial law. Effectively turning the country into an authoritarian police state (Google the definition) for no reason at all. Congress does not even have the right to review the action for 6 months, giving the president dictatorial powers.

• There are bills being debated in congress right now to eliminate the 2nd amendment right to bear arms.

• There are bills being debated in congress to limit free speech, they are beginning to label conservative thought as hate speech. In official memorandums Homeland Security has labeled people who are prolife, and veterans returning from Iraq as potential domestic terrorists. This stretches into the media, where they are beginning initiatives to limit the amount of “conservative” talk show hosts on radio. I thought conservative was an objective term? Who decides what is conservative?

• The president refuses to support Iranian citizens protesting for freedom from an oppressive dictator who pretends to be a democratically elected president. While at the same time, he calls for a dictator who was mentored by Hugo Chavez and Fidel Castro to be reinstated as president. He was legally removed from the president by the supreme court of Honduras because he illegally tried to remain in office for a 3rd presidential term. How long will it be before the president has one of his cronies in congress declare what a wonderful president he is, and that we should extend term limits so he can stay a third term? Or maybe indefinitely? It’s a slippery slope my friends.

• Privacy is being attacked through bills that will force Americans to have a National ID Card with a radio frequency chip inside of it that can be used to track your whereabouts. They are moving to integrate this with your driver license. So now you have to submit to being tracked if the gov’t so decides for the privilege of driving. (Eventually they want to also merge your debit and credit cards with this same ID, so now they can track your spending as well. Think of the possibilities here. The FDA will know if you buy too much junk food and maybe they will fine you for that. After all if you are unhealthy it will cost the national healthcare system more money to treat the illness that come along with high cholesterol or obesity. Or maybe a Homeland security computer will red flag you for investigation or arrest if you purchase (even innocently) the right combination of household chemicals that could be used to make a bomb.

It goes on and on. All of these issues are interconnected. They may not seem like it, but think about it. Consider the relationships of all these issues and the many more that are being debated in our society. We must get angry; we must wake up and use the weapons of democracy to fight this battle. It is not too late. We can vote to have the Federal Reserve Act repealed and destroy some of the links to power that the FED and its owners have. Stay tuned.

Ill leave you with this…



http://www.youtube.com/watch?v=QMBZDwf9dok