RJIFlyboy
March 30th, 2009, 12:23 am
Given the Federal Reserve System and its absolute power over the nation’s money, the federal government, since 1913, must bear the complete responsibility for any inflation. The banks cannot inflate on their own; any credit expansion can only take place with the support and acquiescence of the federal government and its Federal Reserve authorities. The banks are virtual pawns of the government, and have been since 1913. Any guilt for credit expansion and the consequent depression must be borne by the federal government and by it alone.
Most believe the legal fiction that the Federal Reserve System is “owned” by its member banks. In practice, this simply means that these banks are taxed to help pay for the support of the Federal Reserve. If the private banks really “own” the Fed, then how can its officials be appointed by the government, and the “owners” compelled to “own” the Federal Reserve Board by force of government statute? The Federal Reserve Banks should simply be regarded as governmental agencies.
The chief impact of the Great Depression on American thought was the universal acceptance of the view that “laissez-faire capitalism” was to blame. The common opinion—among economists and the lay public alike—holds that “Unreconstructed Capitalism” prevailed during the 1920s, and that the tragic depression shows that old-fashioned laissez-faire can work no longer. It had always brought instability and depression during the nineteenth century; but now it was getting worse and becoming
absolutely intolerable. The government must step in to stabilize
the economy and iron out the business cycle. A vast army of people to this day consider capitalism almost permanently on trial. If the modern array of monetary–fiscal management and stabilizers cannot save capitalism from another severe depression, this large group will turn to socialism as the final answer. To them, another depression would be final proof that even a reformed and enlightened capitalism cannot prosper. It was not the laissez-faire of the government that caused the depression. In fact, the cause of the boom that led to the depression was the Fed's manipulation of the monetary supply, beginning in 1921 through 1929. Low rates, bad loans both foreign and domestic, saving Great Britain at the expense of our economy. The plan in the "roaring twenties" that led to the depression was the governments.
Does this sound familir:
The War Finance Corporation (WFC), headed by Eugene
Meyer, Jr., had made loans to exporters during 1919 and 1920.
Suspended in May, 1920, the WFC was reactivated by Congress
over the veto of President Wilson in January, 1921. It did not then
do very much to finance exports, however; its major role at that
point was bailing out country banks that had loaned to farmers—
an operation that served as a model for the later Reconstruction
Finance Corporation. The WFC worked closely with farm bloc
leaders and appointed a Corn Belt Advisory Committee of these
leaders to pressure midwest bankers into lending more heavily to
farmers. The Act of August 1921, drafted by Chairman Meyer and
Secretary of Commerce Hoover, increased the maximum authorized credits of the WFC to $1 billion and permitted it to lend
directly to farmers’ coops and foreign importers, as well as to
American exporters. The WFC could then supply agricultural
capital. The aims of the expanded WFC were to encourage farm
exports, raise farm prices, subsidize cheap credit to farmers, and
subsidize farm cooperatives—which were to become the pampered pets of the government throughout this period. The new WFC superseded the Stock Growers’ Finance Corporation, an organization promoted by the Federal Reserve in the spring of 1921 and financed by Eastern banks to stabilize the livestock market. The expanded WFC made loans of $39 million for exports and $297 million for agriculture, virtually ending its operations in 1925,after the creation of the Federal Intermediate Credit System.
So check this out: The New Deal was actually started by Hoover!
On November 23 1929, Hoover sent a telegram to all the
governors, urging cooperative expansion of all state public works
programs. The governors, including Franklin D. Roosevelt of New
York, heartily pledged their cooperation, and on November 24 the
Department of Commerce established a definite organization to
join with the states in public works programs. Hoover and Mellon
also proposed to Congress an increase in the Federal Buildings
program of over $400 million, and on December 3 the Department of Commerce established a Division of Public Construction to spur public works planning. Hoover himself granted more subsidies to ship construction through the federal Shipping Board and asked for a further $175 million appropriation for public works. By the end of the year, Professor J.M. Clark of Columbia University was already hailing President Hoover’s “great experiment in constructive industrial statesmanship of a promising and novel sort.”
Source:J.M. Clark, “Public Works and Unemployment,” American Economic Review, Papers and Proceedings (May, 1930)
Check out the farm policies:
Hoover In June 1929 proposed , the Agricultural Marketing Act, which was passed, establishing the Federal Farm Board (FFB). The Federal Farm Board was furnished with $500 million by the Treasury and was authorized to make all-purpose loans, up to a 20-year period, to farm cooperatives at low interest rates. The Board could also establish stabilization corporations to control farm surpluses and bolster farm prices. Essentially, this was a Sapiro-type cartel, this time backed by the coercive arm of the federal government. Hoover appointed, as chairman of the FFB, Alexander Legge, president of International Harvester Co., and long-time protégé of Bernard M. Baruch. International Harvester was one of the leading manufacturers of farm machinery, and therefore Legge, like George Peek, had a direct economic interest in farm subsidization. Other members of the FFB included the Secretary of Agriculture, Arthur M. Hyde; James C. Stone, vice-chairman and founder of the Burley Tobacco Growers’ Cooperative Association; Carl Williams, a cotton grower of the Farmers’ Cooperative Association;C.B. Denman of the National Livestock Producers’ Association; C.C. Teague of the Fruit Growers’ Exchange; William F. Schilling of the National Dairy Association; Samuel McKelvie, publisher of the Nebraska Farmer, representing the grain interests; and Charles S. Wilson, Professor of Agriculture at Cornell University. It is clear that the Board was dominated by representatives of the very farm cooperatives that it was organized to favor and support. Thus, the Hoover administration established a giant agricultural cartel, directed by government, and run by and for the benefit of the cartellists themselves.
Source: Edgar E. Robinson, “The Hoover Leadership, 1929–1933”
If the American people don't stand up and let their voices be heard, then America as we used to know it, will be changed forever.
Most believe the legal fiction that the Federal Reserve System is “owned” by its member banks. In practice, this simply means that these banks are taxed to help pay for the support of the Federal Reserve. If the private banks really “own” the Fed, then how can its officials be appointed by the government, and the “owners” compelled to “own” the Federal Reserve Board by force of government statute? The Federal Reserve Banks should simply be regarded as governmental agencies.
The chief impact of the Great Depression on American thought was the universal acceptance of the view that “laissez-faire capitalism” was to blame. The common opinion—among economists and the lay public alike—holds that “Unreconstructed Capitalism” prevailed during the 1920s, and that the tragic depression shows that old-fashioned laissez-faire can work no longer. It had always brought instability and depression during the nineteenth century; but now it was getting worse and becoming
absolutely intolerable. The government must step in to stabilize
the economy and iron out the business cycle. A vast army of people to this day consider capitalism almost permanently on trial. If the modern array of monetary–fiscal management and stabilizers cannot save capitalism from another severe depression, this large group will turn to socialism as the final answer. To them, another depression would be final proof that even a reformed and enlightened capitalism cannot prosper. It was not the laissez-faire of the government that caused the depression. In fact, the cause of the boom that led to the depression was the Fed's manipulation of the monetary supply, beginning in 1921 through 1929. Low rates, bad loans both foreign and domestic, saving Great Britain at the expense of our economy. The plan in the "roaring twenties" that led to the depression was the governments.
Does this sound familir:
The War Finance Corporation (WFC), headed by Eugene
Meyer, Jr., had made loans to exporters during 1919 and 1920.
Suspended in May, 1920, the WFC was reactivated by Congress
over the veto of President Wilson in January, 1921. It did not then
do very much to finance exports, however; its major role at that
point was bailing out country banks that had loaned to farmers—
an operation that served as a model for the later Reconstruction
Finance Corporation. The WFC worked closely with farm bloc
leaders and appointed a Corn Belt Advisory Committee of these
leaders to pressure midwest bankers into lending more heavily to
farmers. The Act of August 1921, drafted by Chairman Meyer and
Secretary of Commerce Hoover, increased the maximum authorized credits of the WFC to $1 billion and permitted it to lend
directly to farmers’ coops and foreign importers, as well as to
American exporters. The WFC could then supply agricultural
capital. The aims of the expanded WFC were to encourage farm
exports, raise farm prices, subsidize cheap credit to farmers, and
subsidize farm cooperatives—which were to become the pampered pets of the government throughout this period. The new WFC superseded the Stock Growers’ Finance Corporation, an organization promoted by the Federal Reserve in the spring of 1921 and financed by Eastern banks to stabilize the livestock market. The expanded WFC made loans of $39 million for exports and $297 million for agriculture, virtually ending its operations in 1925,after the creation of the Federal Intermediate Credit System.
So check this out: The New Deal was actually started by Hoover!
On November 23 1929, Hoover sent a telegram to all the
governors, urging cooperative expansion of all state public works
programs. The governors, including Franklin D. Roosevelt of New
York, heartily pledged their cooperation, and on November 24 the
Department of Commerce established a definite organization to
join with the states in public works programs. Hoover and Mellon
also proposed to Congress an increase in the Federal Buildings
program of over $400 million, and on December 3 the Department of Commerce established a Division of Public Construction to spur public works planning. Hoover himself granted more subsidies to ship construction through the federal Shipping Board and asked for a further $175 million appropriation for public works. By the end of the year, Professor J.M. Clark of Columbia University was already hailing President Hoover’s “great experiment in constructive industrial statesmanship of a promising and novel sort.”
Source:J.M. Clark, “Public Works and Unemployment,” American Economic Review, Papers and Proceedings (May, 1930)
Check out the farm policies:
Hoover In June 1929 proposed , the Agricultural Marketing Act, which was passed, establishing the Federal Farm Board (FFB). The Federal Farm Board was furnished with $500 million by the Treasury and was authorized to make all-purpose loans, up to a 20-year period, to farm cooperatives at low interest rates. The Board could also establish stabilization corporations to control farm surpluses and bolster farm prices. Essentially, this was a Sapiro-type cartel, this time backed by the coercive arm of the federal government. Hoover appointed, as chairman of the FFB, Alexander Legge, president of International Harvester Co., and long-time protégé of Bernard M. Baruch. International Harvester was one of the leading manufacturers of farm machinery, and therefore Legge, like George Peek, had a direct economic interest in farm subsidization. Other members of the FFB included the Secretary of Agriculture, Arthur M. Hyde; James C. Stone, vice-chairman and founder of the Burley Tobacco Growers’ Cooperative Association; Carl Williams, a cotton grower of the Farmers’ Cooperative Association;C.B. Denman of the National Livestock Producers’ Association; C.C. Teague of the Fruit Growers’ Exchange; William F. Schilling of the National Dairy Association; Samuel McKelvie, publisher of the Nebraska Farmer, representing the grain interests; and Charles S. Wilson, Professor of Agriculture at Cornell University. It is clear that the Board was dominated by representatives of the very farm cooperatives that it was organized to favor and support. Thus, the Hoover administration established a giant agricultural cartel, directed by government, and run by and for the benefit of the cartellists themselves.
Source: Edgar E. Robinson, “The Hoover Leadership, 1929–1933”
If the American people don't stand up and let their voices be heard, then America as we used to know it, will be changed forever.