What caused the Great Depression

[gravesdav]

Here's what I was told from government education. WWI caused false prosperity. Capitalism failed. People overexpanded their business on loans, then they couldn't pay them when the free market didn't work.

From what I understand. The Fed loaned out money to banks who loaned to private businesses. They then inflated by printing money, brought down the banks and bought them out at low prices, and it chained out of control.
Can anyone help me out with this.

 

[constituent]

(who caused?)WWI caused false prosperity. Capitalism failed. People overexpanded their business [on loans, then they couldn't pay] them when the free market didn't work.

the free market worked... the problem is that you can't rig the free market... hence the fed which seeks, in essence, to rig the market.

boom and bust, population control, social engineering, wealth redistribution.

i kinda think of recession and depression like a corporation buying back all of its stock (really cheap). but now the fed is just sorta steeling it back by destroying the value of the currency and weakening your ability to do business (as a producer or consumer).

 

[Mitt Romneys sideburns]

Milton Friedmans explination has something to do with the fed depleting the money supply. Really ,it was a massive failure of government.

 

[angelatc]

Bernacke validated that position, too. Apparently the Fed tightened up the money supply when they should have loosened it.

Actually it all sounds horrid. But that's their story and they're sticking to it.

 

[Darren McFillintheBlank]

..

 

[MsDoodahs]

Bubble blown up: roaring twenties.

Bubble busted (and state moves that prolonged it): the great depression.

...or maybe I should use this instead....

 

[fsk]

The Great Depression was 100% caused by the Federal Reserve.

The Federal Reserve slashed interest rates in the mid 1920s, causing a vast expansion in the money supply. This encouraged everyone to load up on debt and mortgage their property to the hilt. The insiders who control the Federal Reserve knew that interest rates were going to be jacked up in 1929. They stopped issuing loans and sold their stock shares a few months before the crash. The bankers cleaned up by issuing loans and stock during the economic boom, and then buying assets cheap after the crash. The bankers issued loans to themselves to buy up property cheap at the bottom of the Depression. When Roosevelt confiscated the gold in 1933, defaulted on the dollar, and devalued the dollar, all those loans could be repaid in devalued dollars. The international banking cartel cleaned up on each leg of the boom, bust, and default on the dollar.

The Great Depression caused banks to confiscate a lot of property that previously belonged to farmers and small business owners. The US was turned from a nation of farmers and small business owners into a nation of wage slaves and welfare recipients. The welfare state was created to compensate for the damage caused by the Federal Reserve.

The idea that the Great Depression was caused by greedy speculators and economic excess is a lie. The Federal Reserve's loose monetary policy in the 1920 encouraged speculation and the use of leverage. The speculators were merely following the rules of a corrupt monetary system. The insiders knew when the rules would change form easy money to tight money, and they cleaned up.

 

[Locke_rpr]

The Great Depression was 100% caused by the Federal Reserve.

The Federal Reserve slashed interest rates in the mid 1920s, causing a vast expansion in the money supply. This encouraged everyone to load up on debt and mortgage their property to the hilt. The insiders who control the Federal Reserve knew that interest rates were going to be jacked up in 1929. They stopped issuing loans and sold their stock shares a few months before the crash. The bankers cleaned up by issuing loans and stock during the economic boom, and then buying assets cheap after the crash. The bankers issued loans to themselves to buy up property cheap at the bottom of the Depression. When Roosevelt confiscated the gold in 1933, defaulted on the dollar, and devalued the dollar, all those loans could be repaid in devalued dollars. The international banking cartel cleaned up on each leg of the boom, bust, and default on the dollar.

The Great Depression caused banks to confiscate a lot of property that previously belonged to farmers and small business owners. The US was turned from a nation of farmers and small business owners into a nation of wage slaves and welfare recipients. The welfare state was created to compensate for the damage caused by the Federal Reserve.

The idea that the Great Depression was caused by greedy speculators and economic excess is a lie. The Federal Reserve's loose monetary policy in the 1920 encouraged speculation and the use of leverage. The speculators were merely following the rules of a corrupt monetary system. The insiders knew when the rules would change form easy money to tight money, and they cleaned up.

Why does this sound familiar... hmmm.... I know that's what happened then, but for some reason this all sounds like something I've seen in the news recently.... just can't seem to place it though.... oh well, back to watching FOX. Woohoo! Boobies!

 

[fletcher]

Check out FDR's Folly.

 

[kylejack]

Google: Gold and Economic Freedom.

Greenspan will tell you what happened.

 

[noxagol]

The money supply went from ~2400 per person to ~14.50 per person. It was massive deflation. And Hoover and FDR not being intelligent people and cutting taxes and government spending to PROPERLY stimulate the economy.

 

[michaelwise]

I'm not saying that the US congress would have done any better managing our economy since 1913, had they not given a private bank the power to print our money, But they defiantly could not have done any worse. At least when the government borrows money from itself, the tax payers would only have to pay zero percent interest on that borrowed money.

Abolish the privately owned federal reserve bank corporation.

 

[1000-points-of-fright]

Google: Gold and Economic Freedom.

Greenspan will tell you what happened.

How the hell could he become chairman of the Fed after writing that? They must have offered him something good. Or he's just a cheap sell-out.

 

[jaybone]

The Great Depression was 100% caused by the Federal Reserve.

The Federal Reserve slashed interest rates in the mid 1920s, causing a vast expansion in the money supply. This encouraged everyone to load up on debt and mortgage their property to the hilt. The insiders who control the Federal Reserve knew that interest rates were going to be jacked up in 1929. They stopped issuing loans and sold their stock shares a few months before the crash. The bankers cleaned up by issuing loans and stock during the economic boom, and then buying assets cheap after the crash. The bankers issued loans to themselves to buy up property cheap at the bottom of the Depression. When Roosevelt confiscated the gold in 1933, defaulted on the dollar, and devalued the dollar, all those loans could be repaid in devalued dollars. The international banking cartel cleaned up on each leg of the boom, bust, and default on the dollar.

The Great Depression caused banks to confiscate a lot of property that previously belonged to farmers and small business owners. The US was turned from a nation of farmers and small business owners into a nation of wage slaves and welfare recipients. The welfare state was created to compensate for the damage caused by the Federal Reserve.

The idea that the Great Depression was caused by greedy speculators and economic excess is a lie. The Federal Reserve's loose monetary policy in the 1920 encouraged speculation and the use of leverage. The speculators were merely following the rules of a corrupt monetary system. The insiders knew when the rules would change form easy money to tight money, and they cleaned up.

100% correct,
does this scenario seem eerily familiar to you?

I would just like to add the point that the depression was greatly worsened and prolonged by FDR and the New Deal policies. The federal government was greatly expanded while private business was stifled by usurious taxation. FDR is and always has been the father of american socialism.

 

[kylejack]

How the hell could he become chairman of the Fed after writing that? They must have offered him something good. Or he's just a cheap sell-out.

I have a feeling he thought he could change the system from within, and as Federal Reserve Chairmen go, he was extremely responsible. Unfortunately, when you dance with the devil, the devil don't change...the devil changes you.

 

[ladyliberty]

There was also a ten year drought that caused the farmers to lose everything they had - they borrowed money from the banks counting on the next year's crop to repay the loans, but because the rain never came, and the wind blew their top soil away, they had no crops to sell, and no money to repay the loans.

We can't talk about the Great Depression without at least mentioning the drought that occurred as well.

http://www.usd.edu/anth/epa/dust.html

 

[constituent]

if you wanna talk about the drought that occured you first have to talk about the

overplanting.

man, you wanna talk about similiar situation. that's exactly where we're at
right now thanks to speculation and corporate welfare.

 

[kerph32]

Good discussion.

What does RP say got us out of the Great Depression?

 

[Truth Warrior]

Bernanke: Federal Reserve caused Great Depression
Fed chief says, 'We did it. … very sorry, won't do it again'
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=59405

 

[Feenix566]

Read, "The American Great Depression" by Murray Rothbard. He explains it better than anyone.