History of Money Part XI

Once the Federal Reserve Act was signed in 1913, the American economy was firmly in control of the Rothschilds and their associates. President Woodrow Wilson stated in 1916, "Our system of credit is concentrated. The growth of the nation, therefore, and all our activities, are in the hands of a few men." They continued to use the formula of the Latin motto 'Ordo ab chao' meaning 'order out of chaos' to accomplish their means and keep important matters secret from the public.

The trick of creating chaos and then seizing power under the pretense of putting things back in order is a tried and true method of deception and manipulation. This is also referred to by the philosopher Georg Hegel who expressed it in terms of thesis - antithesis - synthesis. Others have described it as problem - reaction - solution. First you create the problem, then you fan the flames to get a reaction, and then you arrive with a solution with what you wanted to achieve in the first place, but wouldn't have been able to achieve under normal circumstances.

With World War I ending in 1918, Europe had to be rebuilt. The nation and the world began an economic recovery that was later called the 'roaring 20s'. However, much of the recovery was based on inflation of speculative values only, while prices of commodities stayed low. The purchasers of these over-priced securities did not expect dividends, but to hold them a while and sell them later at a profit. (Sounds like the internet and tech stock bubble of the late 90s, doesn't it? History repeats itself all the time, especially when it is manipulated.)

The stock market crash and the deflation of the American people's financial structured was scheduled to take place in March, 1929. Paul Warburg gave the official warning to the traders to get out of the market. In his annual report to the stockholders of his International Acceptance Bank, he said, "If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country."

The Federal Reserve Board had already warned the stockholders of the Federal Reserve Banks to get out of the market on Feb. 6, 1929, but it had not bothered to say anything to the rest of the people. Nobody knew what was going on except the Wall Street bankers who were running the show. They all put their assets in gold right before the crash.

On Thursday, October 24, 1929, the initial crash began. By Black Tuesday, October 29, 1929, the market was in a catastrophic downturn. Col. Curtis B. Dall, who was a broker on Wall Street at that time, writes of the Crash, "Actually it was the calculated 'shearing' of the public by the World Money-Powers, triggered by the planned sudden shortage of the supply of call money in the New York money market." Overnight, the Federal Reserve System had raised the call rate to twenty percent. Unable to meet this rate, the speculators' only alternative was to jump out of windows.

The Fed did not respond to the crisis by expanding the money supply by lowering interest rates. They did the opposite. The New York Federal Reserve Bank rate, which dictated the national interest rate, rose to six percent on Nov. 1, 1929. The resulting collapse of the stock market lasted an entire month, bankrupting investors and many independent banks alike. The Fed contracted the money supply by 33%, which caused a much greater depression. The money supply decreased by 8 billion dollars from 1929 to 1933, causing 11,630 banks of the total of 26,401 banks in the US to go bankrupt and close their doors.

Nobel Prize winning economist Milton Friedman said, "The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one-third from 1929 to 1933."

Rep. Louis T. McFadden (D-PA) said, "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 rulers of us all."

Why was this necessary? We will get into the gold transfers tomorrow. Stay tuned ...

Gold there is, and rubies in abundance,
but lips that speak knowledge are a rare jewel. Proverbs 20:15 (NIV)

If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com