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Old 28-06-2017, 02:36 AM   #15
aura
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Join Date: Mar 2009
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Quote:
Originally Posted by iamawaveofthesea View Post
do you not?
There is no evidence that the United States 1930s depression was a planned event, iamawaveofthesea

The cause nowadays is well accepted to have been due to the monetary unit being tied to the alleged, "Gold Standard" originally started in the United Kingdom which resulted in Montagu Norman (Governor of the Bank of England from 1920 to 1944) suffering with a nervous breakdown. If this was a conspiracy, what logical reason exists for why he had reacted in such a way? See below for some context of this period.

Quote:
Why did the U.S. abandon the gold standard?

To help combat the Great Depression. Faced with mounting unemployment and spiraling deflation in the early 1930s, the U.S. government found it could do little to stimulate the economy. To deter people from cashing in deposits and depleting the gold supply, the U.S. and other governments had to keep interest rates high, but that made it too expensive for people and businesses to borrow. So in 1933, President Franklin D. Roosevelt cut the dollar’s ties with gold, allowing the government to pump money into the economy and lower interest rates. “Most economists now agree 90 percent of the reason why the U.S. got out of the Great Depression was the break with gold,” said Liaquat Ahamed, author of the book Lords of Finance. The U.S. continued to allow foreign governments to exchange dollars for gold until 1971, when President Richard Nixon abruptly ended the practice to stop dollar-flush foreigners from sapping U.S. gold reserves.

http://mentalfloss.com/article/12715...-gold-standard
Quote:
Why We Left The Gold Standard

Gold is up. The dollar is down. People are worried about the value of paper money. There was a time, of course, when paper money was backed by gold — the era of the gold standard. The story of why that era came to an end includes a nervous breakdown, a global panic, and a presidential adviser who was an expert on cows and chickens.

The gold standard was a promise. If you had a dollar, you could take it to the government any time you want, and trade it in for a fixed amount of gold. In the U.S. year after year, $20.67 got you an ounce of gold.

In the early part of the 20th century, all the world's key economies were on the gold standard. But in 1931, the system began to unravel in the most powerful country in the world: England. When the Great Depression hit, the people in England panicked, and started trading in their paper money for gold. It got to the point where the Bank of England was in danger of running out of gold.

This was a terrifying thought — particularly for Montagu Norman, the head of the Bank of England. Norman faced an impossible dilemma: It was becoming increasingly difficult for England to remain on the gold standard. But abandoning it was unthinkable for Norman and his contemporaries, who came of age at a time when the gold standard was the unquestioned anchor of the global monetary system.

[Montagu] Norman's response to this dilemma: a nervous breakdown.

"The pressures of the job got to him, and he collapsed one day," says Liaquat Ahamed, author of the book Lords of Finance. "He thought that the future of Western Civilization was in his hands, and he basically couldn't function."


Norman's doctor told him to leave the country and get some rest. While he was gone, his colleagues at the Bank of England realized they had no choice. They were about to run out of gold. So they abandoned the gold standard. It was like a bomb went off. People all over the world thought, if England can do it, anyone can. And all around the world, as countries' economies got worse, people started turning in their paper money for gold. When President Franklin Delano Roosevelt gave first fireside chat on March 12, 1933, the U.S. had just had the mother of all bank runs.

"Because of undermined confidence on the part of the public there was a general rush by a large portion of our population to turn bank deposits into currency or gold," Roosevelt said. When he gave this speech, Roosevelt knew the gold standard was a problem. But he wasn't sure what to do about it. In fact, his top economic advisers were telling him to stay on the gold standard. They felt the same way as Montagu Norman: Gold was what held everything together. But there was one guy advising FDR to leave the gold standard – an economist who Ahamed describes as a "crank."

"George Warren had helped him deal with some of his trees on his estate," he says. "He was an agricultural economist." Warren had written a book on dairy farming, and devised a system for getting chickens to lay more eggs. He had also done a lot of work studying the way the gold standard affected commodity prices and the economy. He told FDR that the country had to leave the gold standard – and Roosevelt took his advice.

When FDR told his advisers about the decision, "they all exploded," Ahamed said. Dean Acheson, assistant secretary of the Treasury, resigned. Another adviser said it would be the end of Western Civilization. But it wasn't. The experts of the day were wrong about the gold standard. "Most economists now agree 90% of the reason why the U.S. got out of the Great Depression was the break with gold," Ahamed says.

Going off the gold standard gave the government new tools to steer the economy. If you're not tied to gold, you can adjust the amount of money in the economy if you need to. You can adjust interest rates. Almost all economists agree, the system we have today is better than the gold standard. Not perfect, but much better.

http://www.npr.org/sections/money/20...-gold-standard
Quote:
Originally Posted by iamawaveofthesea View Post
The whole argument of the central bankers to justify their federal reserve bill in 1913 was that a central bank was needed to provide stability except after it passed in 1913 the world then saw two world wars, a great depression, a series of other wars and periodic 'boom and bust' cycles and now global economic crises so clearly the central banks have not brought stability
Again, since moving this into a new thread its hard to follow.

If you compare the United States in the 1800s against the 1914 beginnings of the Federal Reserve System, there was far less panics and more stability with such a uniformed system. This also invalidates the modern appeals nowadays when people advocate for "alternate currencies" when seen by the time periods used before the Federal Reserve. Money and people always seek uniformity.

Its one of the reasosn why the US Secret Service was created by Lincoln, in response to the large amount of counterfeiting; "alternate currencies" have always been treated and viewed with distrust, limited in region and to provide price stability with redeemability. A uniform unit, like with a uniform monetary system is the natural development of money. History and society pretty well establishes these test cases quite clearly.

Quote:
Originally Posted by iamawaveofthesea View Post
The 'roaring twenties' were caused by the bankers making credit plentiful and then JP morgan, who was a rothschild agent, created a panic and the bankers restricted the money supply leading to the great depression
How do the "bankers make credit plentiful" do they give it away? I would expect that the claimed, "roaring twenties" was influenced by the Panic of 1921 with the United States farmers. I have never studied this period to comment further. Its to simplistic to see everything has a "conspiracy" though. The United States depression was started in the United Kingdom, you are assuming this was caused by the stock-market crash of 1929.
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