Page 1 of 3 123 LastLast
Results 1 to 20 of 45

Thread: The Fed's "Depression" and the Birth of the New Deal

  1. #1

    Default The Fed's "Depression" and the Birth of the New Deal

    The Fed's "Depression" and the Birth of the New Deal

    I hate to harp on the Fed but its all connected.


    The economics of the Great Depression

    In one of the great paradoxes of human history, a federal regulatory institution — created for the purpose of stabilizing the banking system and, thereby, the overall economy by functioning as a lender of last resort — caused the worst depression in our history. President Woodrow Wilson promised that the Federal Reserve Act of 1913 would provide the economy with a “Supreme Court of Finance” that would ensure the liquidity for economic growth and prosperity. Instead, the Federal Reserve collapsed purchasing power and forced 25 percent of the workforce into unemployment. The inattention and incompetence that caused this disaster are so great as to warrant, in the words of economist Clark Warburton, “a charge of lack of adherence to the intent of the law.”

    This massive destruction of liquidity began when the Federal Reserve responded to the 1929 stock market crash by allowing the quantity of money to decline by 2.6 percent over the next year. This extremely tight monetary policy put the economy into severe recession.

    All that was needed to turn the economy around was for the Federal Reserve to add to bank reserves by purchasing government securities. This would have expanded the money supply and was the policy called for by the Federal Reserve’s charter. Instead, the Federal Reserve made another mistake.
    The New Dealers put their trust in government, not in the Founders’ Constitution. Roosevelt told the chairman of the House Ways and Means Committee in 1935, “I hope your committee will not permit doubts as to constitutionality, however reasonable, to block the suggested legislation.” New Dealer Rexford Tugwell said that New Deal policies “were tortured interpretations” of the Constitution in support of actions that the framers “intended to prevent.”
    I have nothing against the womens movement. Especially when Im walking behind it.


  2. #2
    Captain Blackadder's Avatar A bastion of sanity
    Join Date
    Jan 2007
    Location
    Melbourne
    Posts
    7,234

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    I was under th impression the the federal reserve couldent do that because it was over regleated because the federal reserve actually needed some gold to back up its money and buying back goverment bonds would have just lead to a greater reduction in credit and that would have been bad. I must say that I would hardly blame the fed for the great depression the blame for that one goes to a certain republican who didn't listen to 130 very famous economists telling him that it was a bad idea to raise tariffs.
    Patronised by happyho
    Patron of Thoragoros, Chilon
    Member of the Legion of Rahl


  3. #3

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    I was under th impression the the federal reserve couldent do that because it was over regleated
    Its not regulated at all.

    ecause the federal reserve actually needed some gold to back up its money and buying back goverment bonds would have just lead to a greater reduction in credit and that would have been bad. I must say that I would hardly blame the fed for the great depression the blame for that one goes to a certain republican who didn't listen to 130 very famous economists telling him that it was a bad idea to raise tariffs.
    By December the Bank of the United States in New York closed from inability to meet depositors’ demand for cash. The bank was sound, as evidenced by its ability to pay off depositors 92.5 cents on the dollar when it was liquidated during the worst of the Depression.

    What your doing is giving their fake excuse for dumping the gold standard and taking over.
    I have nothing against the womens movement. Especially when Im walking behind it.


  4. #4

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Yet the New Deal achieved a diminution in rights, not in unemployment. This became apparent by 1942, when Ohio dairy farmer Roscoe Filburn was prosecuted successfully by the compassionate federal government for violating the Agricultural Adjustment Act by growing grain for his family’s direct use. In a unanimous decision, the now-tamed Supreme Court ruled that Filburn had engaged in interstate commerce by not engaging in it. Filburn, the Court ruled, should have purchased the grain with which he fed his cows, chickens, and family, not raised it himself. In order to permit the federal government a wide range of action, New Dealers destroyed the doctrine of enumerated powers.
    The Fed is evil. I seen a documentary recently that talked about the exact same stuff, about the fed taking away peoples individual freedoms et cetera, thanks for posting that link Rush, ive nearly finished reading it but my god they are evil.

    Heres the link to the documentary (http://www.zeitgeistmovie.com/), its not just about the fed but that plays a large part in it, its ore like a look at corruption through the ages with Christianitys beginings down to modern day stuff like the birth of the Fed. scary stuff aswell, it freaked me the hell out how people could do this to people. Also theres a really interesting bit with the Rockafellers and all the other banking clan bastards, you would like it Rush and i highly recommend everyone else watch it too. Theres about 10 mins of stock footage at the beginning, just skip till you hear the narrator speaking, its about 10 mins in.

    http://www.zeitgeistmovie.com/
    Last edited by Titus Terrasidius; October 07, 2007 at 11:00 AM. Reason: doc link
    LEX MALLA, LEX NULLA
    Whats that little scales under my avatar?

  5. #5

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Heres the link to the documentary (http://www.zeitgeistmovie.com/), its not just about the fed but that plays a large part in it, its ore like a look at corruption through the ages with Christianitys beginings down to modern day stuff like the birth of the Fed. scary stuff
    Im watching it now. I love one of the opening quotes. Something about those who mistakenly take authority as truth instead of truth as authority. Thats the whole point of the Just the Facts videos I posted . You should check them out. People have no idea what their rights are or how government really works.
    Last edited by Rush Limbaugh; October 07, 2007 at 04:38 PM.
    I have nothing against the womens movement. Especially when Im walking behind it.


  6. #6

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Well I finished it and I must say it was pretty good. I dont totally agree with everything but Ive posted most of what in here before including the Sun of God.
    It pretty much put together all the other stuff Ive been investigating. Now we will be accused of being conspiracy theorists. But if anyone could cover this up these people are capable of it. In fact they do it openly so that nobody suspects. You catch them and your a nut. People better wake up to reality.
    I have nothing against the womens movement. Especially when Im walking behind it.


  7. #7
    MasterOfNone's Avatar RTW Modder 2004-2015
    Join Date
    May 2005
    Location
    England
    Posts
    16,707

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Unfortunately the religious comments in the video are highly assumptious and contain errors (there are no "three kings" in the biblical story - and no December 25th for that matter (sheperds are not out watching their flocks at night in December in Israel!)); as many of the points listed as attributes of the "god's sun" assume that the myths predate the prophecies. From my point of view, it was the truth that was first revealed and then, through various cultures and fallings away from that truth, people lost its true meaning and it became myths, traditions, stories, customs etc. The film maker has reversed that though and it is certainly not a view I take.

    I think care needs to be taken with such films as these; truth is mixed with error. I think it fair to say, though, that many things we are told (in all areas of life) or led to believe are often not as they are presented. But if one views those forces that promote liberty-destroying movements one sees that they also belittle the tenets of Christianity.
    "One of the most sophisticated Total War mods ever developed..."
    The Fourth Age: Total War - The Dominion of Men

  8. #8

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Unfortunately the religious comments in the video are highly assumptious and contain errors (there are no "three kings"
    Who then are these guys?


    He doesnt claim these are in the bible . Quite the opposite. He claims they originate elsewhere which they do. This however is one of the things that are debatable but not important to me as to whats happening today.

    The stuff about the Fed and bankers is all too obviously true. The founding Fathers made income tax and paper money illegal for good reason. In fact they predicted that if not followed exactly whats happening today would happen..
    I have nothing against the womens movement. Especially when Im walking behind it.


  9. #9
    JP226's Avatar Dux Limitis
    Join Date
    Feb 2005
    Location
    Florida
    Posts
    16,977

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    In all fairness to the fed, the depression of the 20's and 30's was based off given economic theory. The business cycle was believed to be the result of the animal spirits hypothesis.

    Today they have more blame because they know that growing the money supply leads to increased inflation. Increased inflation leads to increased misinformation and collapse. The fed, as of late, was working alright until Bernanke came around and bent to political pressure.
    Sure I've been called a xenophobe, but the truth is Im not. I honestly feel that America is the best country and all other countries aren't as good. That used to be called patriotism.

  10. #10
    Kiljan Arslan's Avatar Comes Rei Militaris
    Join Date
    Oct 2006
    Location
    The Place of Mayo in Minnesota
    Posts
    20,672

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Actually they wern't three kings but three magi which would indicate Zorastrion origin.
    according to exarch I am like
    Spoiler Alert, click show to read: 
    Quote Originally Posted by Exarch View Post
    sure, the way fred phelps finds christianity too optimistic?

    Simple truths
    Spoiler Alert, click show to read: 
    Did you know being born into wealth or marrying into wealth really shows you never did anything to earn it?
    btw having a sig telling people not to report you is hilarious.

  11. #11

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    In all fairness to the fed, the depression of the 20's and 30's was based off given economic theory. The business cycle was believed to be the result of the animal spirits hypothesis.
    How is it that as soon as the Fed got power exactly what it was supposed to prevent happened? And when all these private banks closed and corporations went belly down who bought them up for pennies on the dollar. And its coming again. Your believing their propaganda. Weve been in trouble ever since they took over. Its a planned inflation. You cant print money with interest built in and create anything but debt. As Ive told you before your being taught vodoo economics


    Again this country was founded to avoid just this thing.
    I have nothing against the womens movement. Especially when Im walking behind it.


  12. #12
    JP226's Avatar Dux Limitis
    Join Date
    Feb 2005
    Location
    Florida
    Posts
    16,977

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    How is it that as soon as the Fed got power exactly what it was supposed to prevent happened?
    The notion that it was suppose to prevent a business cycle is ludicrous, especially given modern day economic theory. Not saying it wasn't advertised as such.

    The fed's real purpose was to break the chains of velocity caused by the gold standard. There is a point were you can only spend so many peices of gold so many times and as such it creates a sort of ceiling on the economy. You can get passed that with a planned money supply. That's not saying their are no dangers to such a system, however their are very real advantages.

    As Ive told you before your being taught vodoo economics
    there is nothing voodoo about it. You over squeeze or under squeeze a money supply and you have inflationary issues. You chase that inflation and we break those chains and grow a healthy economy.

    Again this country was founded to avoid just this thing.
    alexander hamilton wrote a book trying to disprove adam smith. If anything economic theory hadn't advance enough for this country to be founded against such a thing. We're arguing theory and practicality many years advanced of such a notion.
    Sure I've been called a xenophobe, but the truth is Im not. I honestly feel that America is the best country and all other countries aren't as good. That used to be called patriotism.

  13. #13

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    The fed's real purpose was to break the chains of velocity caused by the gold standard.
    OMG there it is. Yes there purpose was to get FDR to confiscate all the gold and give us a fiat money system which was why we revolted in the first place and just what the founders warned never to let happen. Look at what happened? Who gets rich when all the little guys go under? Youve been brain washed. Time to face reality. It will soon come crashing down around your ears.
    I have nothing against the womens movement. Especially when Im walking behind it.


  14. #14
    JP226's Avatar Dux Limitis
    Join Date
    Feb 2005
    Location
    Florida
    Posts
    16,977

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    You are acting as if gold has value in and of itself. Whether we use wood, paper, eletrons flowing to and from the debit card or gold is irrelevent. The nice thing at the time was that gold was hard to get. It had to be dug up, which helped prevent the misinformation factor. But at the same time we couldn't dig up enough gold to match the tranfer of money in society. Therefore we created a ceiling and prevented a growth in economic welfare.

    And don't think for a second we can't flood the market with gold just like paper. It's been done before, ie spain during the age of bullionism.
    Last edited by JP226; October 08, 2007 at 07:32 PM.
    Sure I've been called a xenophobe, but the truth is Im not. I honestly feel that America is the best country and all other countries aren't as good. That used to be called patriotism.

  15. #15
    Kiljan Arslan's Avatar Comes Rei Militaris
    Join Date
    Oct 2006
    Location
    The Place of Mayo in Minnesota
    Posts
    20,672

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    I assume the Age of Bullionism is synonymous with the early age of colonialism circa lte 1500s to early 1600s?
    according to exarch I am like
    Spoiler Alert, click show to read: 
    Quote Originally Posted by Exarch View Post
    sure, the way fred phelps finds christianity too optimistic?

    Simple truths
    Spoiler Alert, click show to read: 
    Did you know being born into wealth or marrying into wealth really shows you never did anything to earn it?
    btw having a sig telling people not to report you is hilarious.

  16. #16

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    You are acting as if gold has value in and of itself.
    That it does. You cant just get it out of thin air which in reality is what paper money is today.

    The nice thing at the time was that gold was hard to get. It had to be dug up. But at the same time we couldn't dig up enough gold to match the tranfer of money in society.
    You mean money was getting to be worth more in other words defaltion. Oh my. Cant have peoples savings going up.

    And don't think for a second we can't flood the market with gold just like paper. It's been done before, ie spain during the age of bullionism.
    Try it.

    You just dont get it. How can you print money and then attach interest to it before it even hits the street and not create debt?
    I have nothing against the womens movement. Especially when Im walking behind it.


  17. #17
    JP226's Avatar Dux Limitis
    Join Date
    Feb 2005
    Location
    Florida
    Posts
    16,977

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    yes Kiljan

    That it does. You cant just get it out of thin air which in reality is what paper money is today.
    and neither can you get paper, errr cloth. You have to shear(sp?) the sheep. We're just much more efficient at it to match the growth in velocity.

    You mean money was getting to be worth more in other words defaltion. Oh my. Cant have peoples savings going up.
    It was causing deflation issues. And don't think for a second that deflation is a good thing, it causes just as much misinformation issues, which is what causes economies to crash and boom.

    can't have people savings go up? Savings, because it reverts to investing, causes even greater velocity issues then pure consumption. The more we save the more capital aquisitioned, the more production, the more wealth and that wealth has to be defined by gold or paper. Atleast consuming produces less wealth. WHich is what is so ****ed up about demand side economics.

    Try it.
    try it???? It sank the spanish economy and they are still feeling effects to this very day!

    How can you print money and then attach interest to it before it even hits the street and not create debt?
    the interest rate in and of itself is irrelevent. It's that change in interest rate that causes problems. If that change outpaces growth, in the case of paper, or underpaces it, in the case of gold, the economy will crash.
    Last edited by JP226; October 08, 2007 at 07:49 PM.
    Sure I've been called a xenophobe, but the truth is Im not. I honestly feel that America is the best country and all other countries aren't as good. That used to be called patriotism.

  18. #18

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Remarks by Governor Ben S. Bernanke
    At the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois
    November 8, 2002

    On Milton Friedman's Ninetieth Birthday


    The current Fed Chairman, Ben Bernanke, has openly boasted that the Federal Reserve caused the Great Depression. Of course the Fed’s guilt is not that controversial among free-market economists, but it’s interesting that most Americans still don’t grasp this most basic fact of US economic history… even when the Fed Chairman himself has spoken about it publicly.

    The Federal Reserve was forged by Senators Sauron and Aldrich in 1913 to "bring them all, and in the darkness bind them." OK, actually it was created by a group of evil banking wizards on a 1910 duck hunting trip, as all "regulatory agencies" are always summoned into existence by the criminal elements of the industries that they "regulate." The Fed does, however, function in much the same manner as the One Ring:

    The Fed magically drains real wealth from those who use its creations. Since 1913 it has vampired 95% of the value out of the dollar, and thus out of those foolish enough to use the dollar as a "store of value."

    The Fed allows the transfer of this wealth and power to the Dark Lords of foreign lands (under the Monetary Control Act of 1980). The Fed can, and does, simply print tens of billions of dollars to buy the worthless bonds of any dictatorial regime on Earth. This is called "monetizing foreign debt," and is very helpful to many of the Orcish governments.

    The Fed makes the wielder invulnerable to market forces in the bond market. Anyone who knows Fed policy ahead of time gains the Fed’s power to vampire wealth from those who create it.

    In 1929 and through the 1930s, as Bernanke says, the Fed hurled the entire US economy into the Great Depression and kept it there for years, unemploying millions. Civilization literally went backwards, with negative economic growth.

    In 1933, the Fed magically stole all the gold from the bank vaults of the nation and moved it into darkness (a darkness so complete that the gold has not been audited since the 1950s). Dragons everywhere died of envy, moving them onto the endangered species list.

    Today, the Fed detaches the military-entertainment complex from the need to openly pass war taxes through Congress. They simply print as many dollars as they want, reducing the value of all other dollars proportionately. The purpose of taxes is just to maintain a demand for depreciating dollars, since everyone needs them to send to the IRS.

    Does the Fed render the user invisible? Well, it certainly makes him hard to see. (Just try getting an appointment with Bernanke now). And it makes it progressively harder for the wielder to see the real world. Even the strongest free-market economist will eventually be overcome by its power and reduced to droning incomprehensibly.

    The Fed performs no productive economic function. All it does is increase the fluctuations in the value of the medium of exchange. Thanks to the "fractional reserve" nature of the Fed, it can’t even accurately control its own destructive powers.

    Many Americans already realize that the dollar is a terrible store of value, and use it only for the shortest term that they can. Long-term savings are held in the form of stock mutual funds, real estate, and increasingly "exchange traded funds" like GLD and SLV… in other words, gold and silver, just as people have done for thousands of years. There is no barrier to people using any of these real commodities for trade.

    Visa, Discover, Paypal, Ikobo, etc. etc. are all perfectly capable of electronically transferring any form of fully-backed private money around. The ancient "check-clearing" system of the Fed is ridiculous and redundant; why should money travel slower than the speed of light?

    So the only reasonable solution is obvious to students of the Fed: send a multicultural task force to throw the cursed thing into an active volcano. Once the Fed is destroyed, monetary life could return to normal. US political strife would be reduced as well, since there would no longer be an all-powerful economic prize for the winning faction.

    Bernanke, however, wants to keep his Precious. He thinks that the only thing the Fed did wrong in 1929 was not keep printing more money. So, his response to the upcoming economic crisis caused by the Fed printing money will be to print even more Fed money and send out the Fedwraiths to hurl currency down from the backs of Nazgul. (OK, he really referred to helicopters). This sounds great to lots of Americans.

    There are two things wrong with Bernanke’s idea of showering paper currency onto the streets to "fix" deflation:

    First, the Fed doesn’t only damage the economy during deflations. Bernanke ignores the damage done by inflation. In addition to simply stealing from those on fixed incomes, inflation damages the entire information flow in the economy. If no one knows exactly what money is worth, they can’t calculate profits and losses. The whole parallel-processing computer that we call "the market economy" gives inaccurate answers. For instance, all through the 1920s, the Fed inflated, and businesses thought they were doing better than they were. They overinvested in their existing product lines. Then when the Fed DEFLATED in the Depression, businesses went bankrupt and underinvestment was the rule.

    The destruction of information doesn’t stop there. Inflation and deflation make it even harder to predict the value of money years in the future. If there is deflation, you can’t pay off your debts; if there is inflation, your savings, insurance payouts, bond interest etc. become worth less. Inflations and deflations transfer ownership of real goods around, scrambling property rights (and always in favor of those who know monetary policy in advance).

    Second, Bernanke knows full well that the money helicopters aren’t going to distribute money evenly and proportionately to all holders of dollars. The government will print money all right… and they’ll spend it on more Mideast wars, more corporate welfare, and more vote-buying "programs." Even if the Fed wanted to, they couldn’t keep the ownership of real goods from getting transferred away from ordinary working men… and they don’t want to.

    Will Bernanke use the Fed to inflate or deflate? The only certainty is that he will do one or the other, damaging the information flow through the economy… until enough people realize that it’s time to "to cast him down and have no one in his place." In the meantime, best not to have all your family wealth in dollars when Bernanke’s helicopters start blaring the "Ride of the Valkyries."

    July 10, 2006
    Ron Paul Rally, July 21st '07- The Fed Caused The Depression
    Last edited by Rush Limbaugh; October 08, 2007 at 10:35 PM.
    I have nothing against the womens movement. Especially when Im walking behind it.


  19. #19
    MasterOfNone's Avatar RTW Modder 2004-2015
    Join Date
    May 2005
    Location
    England
    Posts
    16,707

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    The stuff about the Fed and bankers is all too obviously true. The founding Fathers made income tax and paper money illegal for good reason. In fact they predicted that if not followed exactly whats happening today would happen..
    Agreed.

    And to address others: gold and silver have intrinsic value, they are less likely to fluctuate greatly than other materials. Hence they are the best form to offset instability. Again, the Framers knew what they were doing when they made gold and silver the constitutional currency.
    "One of the most sophisticated Total War mods ever developed..."
    The Fourth Age: Total War - The Dominion of Men

  20. #20
    Captain Blackadder's Avatar A bastion of sanity
    Join Date
    Jan 2007
    Location
    Melbourne
    Posts
    7,234

    Default Re: The Fed's "Depression" and the Birth of the New Deal

    Rush the fed did not cause the great depression whilst you can say that they did not do the right thing the true cause of the great depression was the Smoot-Hawley Tariff Act and the thing that made it worse was the bankers who refused to loan money to industry and kept the money which caused the actual amount of money to decrease

    PS I find it hard to trust an article as fair and balanced when it referes to he Dark Lords of foreign lands
    Patronised by happyho
    Patron of Thoragoros, Chilon
    Member of the Legion of Rahl


Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •