William Bryon, author of The United States' Unsolved Monetary and Political Problems, had this to say regarding the Panic of 1929, “When everything was ready, the New York financiers started calling 24 hour broker call loans. This meant that the stockbrokers and the customers had to dump their stock on the market in order to pay the loans. This naturally collapsed the stock market, and brought a banking collapse all over the country, because the banks not owned by the oligarchy were heavily involved in broker call claims at this time. Bank runs soon exhausted their coin and currency, and they had to close. The Federal Reserve refused to come to their aid, even though they were instructed under the law to maintain an elastic currency."
"Under the Federal Reserve, panics are scientifically created. The present panic is the first scientifically created one, worked out as we might figure a mathematical problem." - - Congressman Charles Lindbergh. Remarks by Federal Reserve Governor Ben S. Bernanke, March 2, 2004: “The market crash of October 1929 showed if anyone doubted it, that a concerted effort by the Fed can bring down stock prices. But the cost of this "victory" was very high.
Curtis Dall, FDR's son-in-law, a manager for Lehman Brothers was on the floor of the New York Stock Exchange the day of the Crash. He said, "Actually, it was a calculated 'shearing' of the public by the world money powers, triggered by the planned sudden shortage of call money in the New York money market." "The Federal Reserve definitely caused the Great depression by contracting the amount of currency in circulation by one-third from 1929 to 1933." - Milton Friedman, Nobel Prize winning economist.
Whenever anyone writes about the crash of 1929, they invariably tell the story about how all the really big investors of the day got out of the market just in time, while all the schmucks lost their money. When you stop and think that the run on Wall Street came about because of the big New York banks made a margin call and that the very same individuals who were “smart” enough to get out of the market early owned these banks, it doesn’t seem as much “smart” as it does “planned.” Knowing the facts, would you call the crash of ’29 a conspiracy?
In June of 1930, Herbert Hoover received a delegation of public-spirited men who urged an expansion of public works projects to help ease unemployment. “Gentlemen,' the President said, 'you have come sixty days too late. The depression is over.” A 1930 version of: “Mission Accomplished.” Oh, just a quick word on Hoover’s “Trickle Down” theory: It doesn’t work. Republican President Hoover tried the “trickle down” theory (Hoover’s term) to solve economic problems during the last few years of his term. The “Great Depression” is often referred to as the “Republican Depression” because it was Hoover’s financial philosophy that contributed to the collapse of the economy. Hoover’s tax cuts for the rich did not trickle anywhere and things got worse – for the lower and middle classes. When President Roosevelt got into office, he raised taxes on the rich, created jobs for the poor, and things got a little better (Trickle up?) President Ronald Reagan employed Hoover’s failed trickle down theory again in the ‘80s and, just like the first time it was tried, the rich got richer, but the poor got poorer and the economy declined. Today, we see the same problem repeat itself encouraged by Bush’s tax cuts for the wealthy and deregulation of the financial industry. The rich get richer while the poor bail them out. There seems to be a pattern. “Any party which accepts credit for the rain must not be surprised if its opponents blame it for the drought.” - Dwight Morrow on President Hoover.
“The bank is something more than men, I tell you. It’s the monster. Men made it, but they can’t control it.” - John Steinbeck, The Grapes of Wrath.
“During the 1930s, thousands of U.S. banks experienced runs by depositors and subsequently failed... “Long-established central banking practice required that the Fed respond both to the speculative attack on the dollar and to the domestic banking panics. However, the Fed decided to ignore the plight of the banking system ... once again the Fed had chosen to tighten monetary policy despite the fact that macroeconomic conditions--including an accelerating decline in output, prices, and the money supply--seemed to demand policy ease”... “The Federal Reserve had the power at least to ameliorate the problems of the banks. For example, the Fed could have been more aggressive in lending cash to banks (taking their loans and other investments as collateral), or it could have simply put more cash in circulation. Either action would have made it easier for banks to obtain the cash necessary to pay off depositors, which might have stopped bank runs before they resulted in bank closings and failures. Indeed, a central element of the Federal Reserve's original mission had been to provide just this type of assistance to the banking system. The Fed's failure to fulfill its mission was, again, largely the result of the economic theories held by the Federal Reserve leadership.” – Ben Bernanke, Chairman of the Federal Reserve Banks
“Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal Reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.” “From the Atlantic to the Pacific our country has been ravaged and laid waste by the evil practices of the Federal Reserve Board and the Federal Reserve banks and the interests which control them ... This is an era of economic misery, and for the conditions that caused that misery, the Federal Reserve Board and the Federal Reserve banks are fully liable.” - Louis Mc Fadden, Republican, Chairman of the House Banking Committee, Congressional Record - June 10, 1932.
"Liquidate labor, liquidate stocks, liquidate real estate… values will be adjusted, and enterprising people will pick up the wreck from less-competent people." – Andrew Mellon, Secretary of the Treasury. “Many Fed officials appeared to subscribe to the infamous "liquidationist" thesis of Treasury Secretary Andrew Mellon, who argued that weeding out "weak" banks was a harsh but necessary prerequisite to the recovery of the banking system. Moreover, most of the failing banks were relatively small and not members of the Federal Reserve System, making their fate of less interest to the policymakers. In the end, Fed officials decided not to intervene in the banking crisis, contributing once again to the precipitous fall in the money supply.” – Ben Bernanke
Between 1929 and 1933, the “Fed” reduced the money supply by an additional 33%. In only a few weeks from the day of the crash, 3 billion dollars of wealth vanished. Within a year, 40 billion dollars of wealth vanished. "The stock of money, prices & output was decidedly more unstable after the establishment of the Reserve System than before. The most dramatic period of instability in output was, of course, the period between the 2 wars...This evidence persuades me that at least a third of the price rise during & just after World War I is attributable to the establishment of the Federal Reserve System...& that the severity of each of the major contractions--1920-21, 1929-33 & 1937-38-- is directly attributable to acts of commission & omission by the Reserve authorities." - Nobel Prize winning economist Milton Friedman.
The Great Gold Grab
After he took office, President Roosevelt, by Executive Order, confiscated all the gold in the hands of Americans. The official price paid was $20.65 per ounce, a bonus of $0.65 per ounce. Eight months later, the official price paid for gold was raised to $35.00 per ounce. For the suckers, the American public, their meager supply of dollars was instantly devalued by about 40%. For those who were in the know, the rich who had bank accounts in other lands, it turned a quick, risk-free profit, nearly doubling their money. President Roosevelt later disowned himself from the bill claiming to have not read it and his Secretary of the Treasury claimed this was, "what the experts wanted." Roosevelt signed many Executive Orders during his first term – presumably carefully written by “experts” who, unlike FDR, knew exactly what they were doing. "All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S." - President F.D. Roosevelt, 1933. Think about that. Better hide your gold in your mattress.
An interesting side note is that the legal basis for Roosevelt’s Executive Order was the "War Powers Act" of October 6, 1917. This war had been over for 14 years! The 1917 law was officially titled the "National Emergency in Banking Relief and Trading with the Enemy Act." The 1917 War Powers Act contained explicit language that excluded American citizens from the legislation so FDR convened a Special Session of Congress in 1933 specifically to remove that clause. Consequently every law abiding US citizen was considered an "enemy” and subject to its decree. This permitted the President to declare a "national emergency" for just about any reason. In fact, the U.S. has been in a constant state of “emergency” since 1933 and there are now in effect at least four different president-proclaimed states of national emergency – from 1933, 1950, 1970, and 1971. They just do not go away.
"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath to preserve, protect and defend the Constitution of the U.S. At midnight on the 5th of March 1933, he confiscated the property of American citizens. He took the currency of the United States standard of value. He repudiated the internal debt of the Government to its own citizens. He destroyed the value of the American dollar. He released, or endeavored to release, the Fed from their contractual liability to redeem Fed currency in gold or lawful money on a parity with gold. He depreciated the value of the national currency.” "Has Roosevelt relieved any other class of debtors in this country from the necessity of paying their debts? Has he made a proclamation telling the farmers that they need not pay their mortgages? Has he made a proclamation to the effect that mothers of starving children need not pay their milk bills? Has he made a proclamation relieving householders from the necessity of paying rent? Not he! He has issued one kind of proclamation only, and that is a proclamation to relieve international bankers and the foreign debtors of the United States Government. ” Remarks by Louis McFadden R-PA
Bought at bargain basement price with money produced from nothing by the Federal Reserve, the gold was melted down and stacked in the newly built bullion depository, Fort Knox. Once collected in 1935 the price of gold was raised from $20.65 up to $35 per ounce, but only people with foreign bank accounts could buy this gold. But that's not all folks. It has estimated that by the end of World War II Fort Knox held about 70% of the world's gold, but over the years, it was sold off to the European bankers while a public audit of Fort Knox reserves was repeatedly denied. While Americans could not own gold, other than as rare coins, individuals acting through foreign banks could purchase all the U.S. gold they wanted at $35 dollars per ounce.
"Allegations of missing gold from our Fort Knox vaults are being widely discussed in European circles. But what is puzzling is that the Administration is not hastening to demonstrate conclusively that there is no cause for concern over our gold treasure - if indeed it is in a position to do so." Edith Roosevelt. In 1953, President Eisenhower ordered an audit and Fort Knox was found to contain over 700 million ounces of gold. Although Federal Law requires an annual physical audit of Fort Knox's gold, it is under Eisenhower's presidency that it was last audited - for reasons that will soon become clear.
In 1971, when Nixon reopened the gold window to Americans, the price soared. By 1979, it had peaked at about $850 per ounce. In 1974, a New York periodical published an article claiming that the Rockefeller family was manipulating the Federal Reserve to sell Fort Knox gold at $42.22 per ounce - when the market was at $160 to $170 an ounce. Three days after the publication of this story, its anonymous source, long time personal secretary to Nelson Rockefeller, Louise Auchincloss Boyer, fell to her death from the window of her tenth story apartment in New York. Labeled an, “apparent suicide” by police, she was not depressed according to her friends and left no suicide note.
Finally, in 1981, President Ronald Reagan, considering going back to a gold standard, decided to examine the books of Fort Knox. He appointed a group called The Gold Commission who reported that the US Treasury owned no gold at all. All the gold remaining in Fort Knox is now owned by that private corporation, the Federal Reserve Bank, held as collateral against the “national debt.” By printing dollars made from nothing, the Fed had robbed the largest treasure of gold on earth.
A key piece of legislation in this story is the Emergency Banking Act of 1933, which Congress passed on March 9 without having read it and after “only the most trivial debate.” House Minority Leader Bertrand H. Snell (R-NY) conceded that it was "entirely out of the ordinary" to pass legislation that "is not even in print at the time it is offered." He urged his colleagues to pass it all the same. "The real truth of the matter is, as you and I know that a financial element in the larger centers has owned the government ever since the days of Andrew Jackson. History depicts Andrew Jackson as the last truly honorable and incorruptible American president." - Franklin D. Roosevelt. “The real rulers in Washington are invisible, and exercise power from behind the scenes.” — Supreme Court Justice Felix Frankfurter, 1952.
The U.S. was not the only country controlled by bankers. In its 20th June, 1934 issue, New Britain magazine of London published a statement made by former British Prime Minister David Lloyd George that, "Britain is the slave of an international financial bloc." Also in the article, “Democracy has no more persistent and insidious foe than money power ...questions regarding Bank of England, its conduct and its objects, are not allowed by the Speaker (of the House of Commons)."
“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create money, and with the flick of the pen, they will create enough money to buy it back again... Take this great power away from them and all great fortunes like mine will disappear, and they ought to disappear, for then this would be a better and happier world to live in. But if you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit." - Sir Josiah Stamp, director of the Bank of England during the years 1928-1941
The Hitler Project
“After World War I, Germany fell into the hands of the German International Bankers. Those bankers bought her lock, stock, and barrel. They have purchased her industries, they have mortgages on her soil, they control her production, they control all her public utilities. Through the Federal Reserve Board... over $30 billions of American money... has been pumped into Germany. You have all heard of the spending that has taken place in Germany... modernistic dwellings, her great planetariums, her gymnasiums, her swimming pools, her fine public highways, her perfect factories. All this was done on our money. All this was given to Germany through the Federal Reserve Board. The Federal Reserve Board has pumped so many billions of dollars into Germany that they dare not name the total.” Rep. Louis McFadden, Chairman of the House Banking Committee. “What luck for rulers that men do not think.” – Adolph Hitler
U.S. Corporations funding Hitler included Standard Oil, General Electric, I.T.T., American I.G. Farben, Ethyl Corporation, General Motors, and Ford. The largest contributor to the fund was I.G. Farben. The board of American I.G. Farben at this time contained some of the most prestigious names among American industrialists: Edsel B. Ford of the Ford Motor Company, C.E. Mitchell of the Federal Reserve Bank of New York, and Walter Teagle, director of the Federal Reserve Bank of New York, the Standard Oil Company of New Jersey, and President Franklin D. Roosevelt's Georgia Warm Springs Foundation. Paul M. Warburg, first director of the Federal Reserve Bank of New York and chairman of the Bank of Manhattan, was a Farben director and in Germany, his brother Max Warburg was also a director of I.G, Farben.
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