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ECONOMIC CRASH ON ITS WAY

    Economic statistics are rehearsed on the daily news and in speeches by politicians. If one were to look through these rose-colored glasses, it would be easy to believe that the nation's economy will continue to grow and prosper under the wise guidance of the Federal Reserve. If financial crashes of the past are considered, however, it is not difficult to see a financial crisis of apocalyptic proportions on the horizon.

    The crash of 1929 is widely regarded by historians as an act of the market forces much like natural catastrophes are attributed to "an act of God". Stock prices were greatly overvalued in a bull market and the inevitable collapse occurred as the value of key stocks fell.

    One major factor that led to the over inflation of stocks in '29 was the ease of buying stocks on margin. Only ten percent of a stock's value was necessary to make the purchase; the rest was borrowed from the call money market. Financial institutions invested heavily in call money in the mid to late twenties because it paid a better interest rate than the standard bank deposit. The infusion of easy cash pushed the stock market through the ceiling as people from all walks of life joined the rush to get rich. Soon the market reached its precarious peak and without the exponential increase in investment, the only way it could go was down.

    As the stock market crashed a large number of financial institutions crashed as well. The domino effect resulted in what we know as the "Great Depression".

    One may see many parallels between the late twenties and the mid nineties. Wall Street has experienced a bull market in the past five years that has pushed the Dow Industrial Average to record levels, however, the stock market has no resemblance to the rest of the economy. As in the twenties, more than half of all Americans are living "hand-to-mouth". The middle class is also shrinking as the real standard of living declines. Economic figures indicate the economy is growing, but the rewards are being funnelled to the top as well paid manufacturing jobs are exported to third world countries. As in the twenties, there is also a huge amount of personal debt as revolving credit card debt passes the $400 billion mark.

    In the decade before the big crash 1,200 business mergers swallowed up 6,000 independently owned companies. By 1929 just 200 corporations would control over half of American industry.

    The 80's and 90's are the years of the "leveraged acquisition" as companies have stepped out onto thin ice in their bid to take over one another. These corporate conquests have driven up the value of stock and created a huge amount of debt, making many large corporations and their investors vulnerable to market fluctuations.

    During the bull market of the 20's there was an average of 600 bank failures a year. The Savings and Loan failures of recent times have seemed to contradict rosy economic indicators.

    The above are all symptoms of an economy that is driven and supported largely by borrowed money and vulnerable to a domino effect collapse. The similarities between the late 20's and the present day all warn of a coming crisis.

    The "boom and bust" cycles of the past all had a purpose. Powerful international bankers had their hand in the fluctuation of interest rates, and interest rates are what determined the fortune and loss for so many.

    In his book entitled, "Baruch: The Public Years", money baron Bernard Baruch wrote, "Nothing did more to spur the boom in stocks than the decision made by the New York Federal Reserve Bank, in the spring of 1927, to cut the rediscount rate. Benjamin Strong, Governor of the bank, was chief advocate of this unwise measure, which was taken largely at the behest of Montagu Norman of the Bank of England....At the time of the Bank's action I warned of its consequences....I felt that sooner or later the market had to break."

    By making money cheap and easy to borrow, the Federal Reserve effectively created a bull market sending stocks soaring to artificially high levels. When the market was sufficiently out on a limb, the Fed raised interest rates, triggering a sell-off of stocks purchased on margin. In the panic that followed, the market lost $16 billion, a tremendous amount of money in those times.

    Curtis Dall, member of the N.Y. stock exchange wrote in his book, "F.D.R.: My Exploited Father-in-Law", that the '29 stock market crash "was the calculated 'shearing' of the public by the World-Money powers, triggered by the sudden shortage of call money in the New York money market." Not everyone lost money in the crash.

    During the Depression Rep. Louis McFadden was chairman of the House Committee on Banking and Currency. In 1933 he said before Congress that the Crash of '29 "was not accidental. It was a carefully contrived occurrence....The international bankers sought to bring about a condition of despair here so they might emerge as rulers of us all."

    The "boom and bust" cycle can be seen repeated at other times during this nation's history. There was a crash in 1907 which brought about the Federal Reserve in 1912. In 1971 Rep. McFadden was quoted in The New York Times Magazine as saying that the Federal Reserve Act established "a world banking system...a super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure."

    The crash of 1929 won the election for Roosevelt who used a compliant Congress in 1933 to abandon the gold standard and print worthless paper money. A desperate economic climate opened the way for the passage of more radical measures that would have never been considered in more prosperous times. Curtis Dall said of his father-in-law, Franklin Roosevelt, that "most of his thoughts, his political 'ammunition,' as it were, was carefully manufactured for him in advance by the CFR-One-World Money group."

    Artificial prosperity has been created by those same powers in this day. In the 70's they arranged for gas prices to double. While the main purpose of this was to create economic inflation, it also resulted in a boom in the Texas oil industry. In the 80's the price of gas fell, resulting in a collapse of the Texas economy. The housing market in Texas also collapsed, causing banks burdened with non-perfoming real estate loans to go insolvent.

    California was once hailed as the "world's seventh largest economy" and the "engine of America's economy". During the 80's there was a huge increase in defense spending by the Reagan Administration. Much of that was received by the California aerospace industry. High paying aerospace jobs were the backbone of California's prosperity. At the end of the "Cold War" those defense contracts dried up, resulting in the collapse of California's housing market and economy.

    Since the deepest part of California's depression in '92, there has been a modest recovery statistically, but the truth is "the engine of America's economy" is dead in the water, another portentous sign. Spiraling Federal debt and a sputtering national economy have further served to keep the U.S. government compliant to the money powers. The symptoms of another crash are evident, as well as the agenda that would be the reason for it.

    As the New World Order comes out of its hiding place into full view, it will need a compliant majority who will accept the "deliverance" it will offer. This deliverance will be nothing more than the abject slavery it has been leading the nations into for the past century.

    The money powers have overreached themselves this time. In the 20's rugged individualism and self sufficiency were strong traits in the American character. Most people lived on a farm or could go back to it. Many were inclined to take responsibility for their circumstances.

    This is a different day altogether. Most people are fed by their local supermarket which is supplied with commercially grown food from hundreds or thousands of miles away. This system is driven by money, and most people, when faced with the crisis of collapse, will lack the character to respond in a law abiding manner. This is especially true in the large urban areas that are already armed camps ripe for revolt. The One-World Money group and those who have supported them will be swept away in the conflagration they have planned for others.

    "How much she (the One-World Money Group) hath glorified herself, and lived deliciously, so much torment and sorrow give her: for she saith in her heart, I sit a queen, and am no widow, and shall see no sorrow. Therefore shall her plagues come in one day, death, and mourning, and famine; and she shall be utterly burned with fire: for strong is the Lord God who judgeth her. And the kings of the earth (politicians), who have committed fornication (sold the nation for personal gain) and lived deliciously with her, shall bewail her, and lament for her, when they shall see the smoke of her burning. And the merchants of the earth (pastors, landlords, money lenders, and all those who live off of the labor of others) shall weep and mourn over her; for no man buyeth their merchandise any more." Revelation 18:7-9,11.

Written 8/96

 

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