1929
In April, Paul Warburg sent out a secret warning to his friends that a collapse and nationwide depression had been planned for later that year. It is certainly no coincidence that the biographies of all the Wall Street giants of that era: John D. Rockefeller; J. P. Morgan; Joseph Kennedy; Bernard Baruch; et al, all marveled at the fact these people got out of the stock market completely just before the crash and put their assets into cash or gold.So, as all the bankers and their friends already knew, in August the Federal Reserve began to tighten the money supply. Then on 24th October the big New York bankers called in their 24 hour broker call loans. This meant that both the stockbrokers and their customers had to dump their stocks on the stock market to cover their loans, irrespective of what price they had to sell them for.
As a result of this the stock market crashed on a day that would go down in history as, "Black Thursday." In his book, The Great Crash 1929, John Kenneth Gailbraith makes the following shocking statement,
"At the height of the selling frenzy, Bernard Baruch brought Winston Churchill into the visitors gallery of the New York Stock Exchange to witness the panic and impress him with his power over the wild events on the floor."
Republican Congressman, Louis T McFadden, Chairman of the House Banking & Currency Committee, from 1920 to 1931, was as usual quite candid as to who was responsible. He stated of this crash,
"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 as rulers of us all."
Curtis B. Dall, the son-in-law of Franklin Delano Roosevelt, who was working for Lehmann Brothers as a broker, on the floor of the New York Stock Exchange, on the day of the crash, stated in his 1967 book, F. D. R. My Exploited Father-In-Law,"Actually, it was the 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."
Despite the claims of how the Federal Reserve would protect the country against depressions and inflation, they continued to further contract the money supply. Between 1929 and 1933, they reduced the money supply by an additional 33%. Even, Milton Friedman, the Nobel Peace Prize winning economist stated the following in a radio interview in January 1996,
"The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one-third from 1929 to 1933."
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. However, it did not simply disappear, it just ended up consolidated in fewer and fewer hands, as was planned. An example of this is Joseph P. Kennedy, John F. Kennedy's father. In 1929 he was worth 4 million dollars, in 1935 that had increased to over 100 million dollars.This is why depressions are caused. As stated previously the top bankers and their friends got out of the stock market and purchased gold just before the crash, which they shipped over to London. This meant that the money lost by most Americans during the crash didn't just vanish, it just ended up in these people's hands.
It also was spent overseas, as whilst the Great Depression was occurring, millions of American dollars was being spent on rebuilding Germany from damage sustained during World War I, in preparation for the bankers World War II. Republican Louis T. McFadden, Chairman of the House Banking & Currency Committee from 1920 to 1931, stated the following in relation to this,
"After World War I, Germany fell into the hands of the German International Bankers. Those bankers bought her and now they own 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.
The international German bankers have subsidized the present Government of Germany and they have also supplied every dollar of the money Adolph Hitler has used in his lavish campaign to build up a threat to the government of Bruening. When Bruening fails to obey the orders of the German International Bankers, Hitler is brought forth to scare the Germans into submission ...
Through the Federal Reserve Board over 30 billion of dollars 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."
The money pumped in to Germany to build her up in preparation for World War II, was into the German Thyssen banks which were affiliated with the Harriman interest in New York.
