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Matthew Ehret
\nStrategic Culture Foundation<\/p>\n
The western media has been hit with warnings of\u00a0\u201cfinancial Armageddon\u201d<\/a>\u00a0and the need for a \u201cglobal hegemonic synthetic currency<\/a>\u201d to replace the collapsing US dollar under a new system of green finance. These statements have been made by former and current Bank of England Governors Mark Carney and Mervyn King respectively and should not be ignored as the world sits atop the largest financial bubble in human history reminiscent of the 1929 bubble that was triggered on black Friday in the USA which unleashed a great depression across Europe and America.<\/p>\n While I\u2019m not arguing that a systemic change is not vital to protect people from the effects of a general meltdown of the $1.2 trillion derivatives bubble sometimes called \u201cthe western banking system\u201d, what such central bankers are proposing is a poison more deadly than the disease they promise to cure.<\/p>\n In principle, the world crisis, is no different from the artificially manufactured crises which the world faced in 1923 when unpayable Versailles debts were heaved onto a beaten Germany, which I elaborated upon in\u00a0my previous report<\/a>. It is also no different from the nature of the folly that unleashed unbounded speculation during the \u201croaring 1920s\u201d which led to the bank-run and general meltdown. Similarly, the solutions being proposed to put out the fire by those same arsonists who lit the matches today are identical to what the world faced in 1933 as a \u201ccentral bankers\u201d solution for the world depression.<\/p>\n How the 1929 Crash was Manufactured<\/strong><\/p>\n While everyone knows that the 1929 market crash unleashed four years of hell in America which quickly spread across Europe under the great depression, not many people have realized that this was not inevitable, but rather a controlled blowout.<\/p>\n The bubbles of the 1920s were unleashed with the early death of President William Harding in 1923 and grew under the careful guidance of JP Morgan\u2019s President Coolidge and financier Andrew Mellon (Treasury Secretary) who de-regulated the banks, imposed austerity onto the country, and cooked up a scheme for Broker loans allowing speculators to borrow 90% on their stock. Wall Street was deregulated, investments into the real economy were halted during the 1920s and insanity became the norm. In 1925 broker loans totalled $1.5 billion and grew to $2.6 billion in 1926 and hit $5.7 billion by the end of 1927. By 1928, the stock market was overvalued fourfold!<\/p>\n When the bubble was sufficiently inflated, a moment was decided upon to coordinate a mass \u201ccalling in\u201d of the broker loans. Predictably, no one could pay them resulting in a collapse of the markets. Those \u201cin the know\u201d cleaned up with JP Morgan\u2019s \u201cpreferred clients\u201d, and other financial behemoths selling before the crash and then buying up the physical assets of America for pennies on the dollar. One notable person who made his fortune in this manner was Prescott Bush of Brown Brothers Harriman, who went onto bailout a bankrupt Nazi party in 1932. These financiers had a tight allegiance with the City of London and coordinated their operations through the private central banking system of America\u2019s Federal Reserve and Bank of International Settlements.<\/p>\n The Living Hell that was the Great Depression<\/strong><\/p>\n Throughout the Great depression, the population was pushed to its limits making America highly susceptible to fascism as unemployment skyrocketed to 25%, industrial capacity collapsed by 70%, and agricultural prices collapsed far below the cost of production accelerating foreclosures and suicide. Life savings were lost as 4000 banks failed.<\/p>\n This despair was replicated across Europe and Canada with eugenics-loving fascists gaining popularity across the board. England saw the rise of Sir Oswald Mosley\u2019s British Union of Fascists in 1932, English Canada had its own fascist solution with the Rhodes Scholar \u201cFabian Society\u201d League of Social Reconstruction (which later took over the Liberal Party) calling for the \u201cscientific management of society\u201d. Time magazine had featured Il Duce over 6 times by 1932 and people were being told by that corporate fascism was the economic solution to all of America\u2019s economic woes.<\/p>\n In the midst of the crisis, the City of London removed itself from the gold standard in 1931 which was a crippling blow to the USA, as it resulted in a flight of gold from America causing a deeper contraction of the money supply and thus inability to respond to the depression. British goods simultaneously swamped the USA crushing what little production was left.<\/p>\n It was in this atmosphere that one of the least understood battles unfolded in 1933.<\/p>\n 1932: A Bankers\u2019 Dictatorship is Attempted<\/strong><\/p>\n In Germany, a surprise victory of Gen. Kurt Schleicher caused the defeat of the London-directed Nazi party in December 1932 threatening to break Germany free of Central Bank tyranny. A few weeks before Schleicher\u2019s victory, Franklin Roosevelt won the presidency in America threatening to regulate the private banks and assert national sovereignty over finance.<\/p>\n Seeing their plans for global fascism slipping away, the City of London announced that a new global system controlled by Central Banks had to be created post haste. Their objective was to use the economic crisis as an excuse to remove from nation states any power over monetary policy, while enhancing the power of Independent Central Banks as enforcers of \u201cbalanced global budgets\u201d. elaborate<\/p>\n In December 1932, an economic conference\u00a0\u201cto stabilize the world economy<\/em>\u201d was organized by the League of Nations under the guidance of the Bank of International Settlements (BIS) and Bank of England. The BIS was set up as \u201cthe Central Bank of Central Banks\u201d in 1930 in order to facilitate WWI debt repayments and was a vital instrument for funding Nazi Germany-\u00a0long after WWII began<\/a>. The London Economic Conference brought together 64 nations of the world under a controlled environment chaired by the British Prime Minister and opened by the King himself.<\/p>\n A resolution passed<\/a>\u00a0by the Conference\u2019s Monetary Committee stated:<\/p>\n \u201cThe conference considers it to be essential, in order to provide an international gold standard with the necessary mechanism for satisfactory working, that independent Central Banks, with requisite powers and freedom to carry out an appropriate currency and credit policy, should be created in such developed countries as have not at present an adequate central banking institution\u201d\u00a0<\/em>and that\u00a0\u201cthe conference wish to reaffirm the great utility of close and continuous cooperation between Central Banks. The Bank of International Settlements should play an increasingly important part not only by improving contact, but also as an instrument for common action.\u201d<\/em><\/p><\/blockquote>\n Echoing Carney\u2019s current fixation with \u201cmathematical equilibrium\u201d, the resolutions stated that the new global gold standard controlled by central banks was needed\u00a0\u201cto maintain a fundamental equilibrium in the balance of payments\u201d<\/em>\u00a0of countries. The idea was to deprive nation states of their power to generate and direct credit for their own development.<\/p>\n FDR Torpedoes the London Conference<\/strong><\/p>\n Chancellor Schleicher\u2019s resistance to a bankers\u2019 dictatorship was resolved by\u00a0a \u201csoft coup\u201d<\/a>\u00a0ousting the patriotic leader in favor of Adolph Hitler (under the control of a Bank of England toy named Hjalmar Schacht) in January 1933 with Schleicher assassinated the following year. In America,\u00a0an assassination attempt on Roosevelt<\/a>\u00a0was thwarted on February 15, 1933 when a woman knocked the gun out of the hand of an anarchist-freemason in Miami resulting in the death of Chicago\u2019s Mayor Cermak (1).<\/p>\n Without FDR\u2019s dead body, the London conference met an insurmountable barrier, as FDR refused to permit any American cooperation. Roosevelt recognized the necessity for a new international system, but he also knew that it had to be organized by sovereign nation states subservient to the general welfare of the people and not central banks dedicated to the welfare of the oligarchy. Before any international changes could occur, nation states castrated from the effects of the depression had to first recover economically in order to stay above the power of the financiers.<\/p>\n By May 1933, the London Conference crumbled when FDR complained that the conference\u2019s inability to address the real issues of the crisis is\u00a0\u201ca catastrophe amounting to a world tragedy\u201d\u00a0<\/em>and that fixation with short term stability were\u00a0\u201cold fetishes of so-called international bankers\u201d.<\/em>\u00a0FDR continued\u00a0\u201cThe United States seeks the kind of dollar which a generation hence will have the same purchasing and debt paying power as the dollar value we hope to attain in the near future. That objective means more to the good of other nations than a fixed ratio for a month or two. Exchange rate fixing is not the true answer.\u201d<\/em><\/p>\n The British drafted an official statement saying\u00a0\u201cthe American statement on stabilization rendered it entirely useless to continue the conference.\u201d<\/em><\/p>\n FDR\u2019s War on Wall Street<\/strong><\/p>\n The new president laid down the gauntlet in his\u00a0inaugural speech<\/a>\u00a0on March 4th<\/sup>\u00a0saying:\u00a0\u201cThe money-changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit\u201d.<\/em><\/p>\n FDR declared a war on Wall Street on several levels, beginning with his support of the\u00a0Pecorra Commission<\/a>\u00a0which sent thousands of bankers to prison, and exposed the criminal activities of the top tier of Wall Street\u2019s power structure who manipulated the depression, buying political offices and pushing fascism. Ferdinand Pecorra who ran the commission called out the deep state when he said\u00a0\u201cthis small group of highly placed financiers, controlling the very springs of economic activity, holds more real power than any similar group in the United States.\u201d<\/em><\/p>\n