Chapter 43 7. The 1927 Conspiracy of the International Bankers

Benjamin.With the joint support of Morgan & Co. and Raybo Kuhn, Strong became the chairman of the Federal Reserve Bank of New York. Together with Norman, the chairman of the Bank of England, he conspired with many important players in the Anglo-Saxon financial industry. events, including the worldwide Great Depression of 1929. Norman's grandfather and maternal grandfather both served as the chairman of the Bank of England. Such a prominent life experience is unique in British history.In the book "The Politics of Money", the author Johnson wrote: As close friends, Strong and Norman often vacationed together in the south of France.Strong's monetary easing in New York from 1925 to 1928 was a private agreement between him and Norman to keep interest rates in New York lower than in London.For the sake of this international cooperation, Strong deliberately kept down the interest rates in New York until the irreversible consequences occurred.Monetary easing in New York encouraged the American boom of the 1920s, sparking a speculative frenzy.Regarding this secret agreement, the House Stability Hearings conducted an in-depth investigation in 1928 under the leadership of Congressman McFadden and concluded that international bankers caused the stock market crash in the United States by manipulating the flow of gold.

Senator McFadden: Could you please briefly state what influenced the final decision of the Federal Reserve Board (referring to the policy of cutting interest rates in the summer of 1927)? Federal Reserve Board Director Miller: You asked a question that I can't answer. McFadden: Maybe I can clarify where the advice that led to the decision to change the interest rate last summer came from? Miller: The three largest European Central Banks sent their representatives to the country.They are the directors of the Bank of England (Norman), Halma.Dr. Schacht (President of the Bundesbank) and Prof. Liszt of the Bank of France.These gentlemen are in a meeting with the Federal Reserve Bank of New York.About a week or two later, they showed up in Washington and spent most of the day.They came to Washington one night, received them the next day by the directors of the Federal Reserve, and returned to New York in the afternoon.

McFadden: Were all the Fed directors present at the luncheon? Miller: Oh, yes.The board of directors of the Fed deliberately arranged for everyone to get together. McFadden: Was it a social event, or a serious discussion? Miller: I think it's mostly a social event.Personally speaking, before the luncheon, Halma and IDr. Schacht talked for a long time, and also chatted with Professor Lister for a long time. After dinner, Mr. Norman and I also talked with Strong (chairman of New York Federal Reserve Bank) in New York for a while. McFadden: Is that a formal (Fed) board meeting? Miller: No.

McFadden: Was that just an informal discussion of the outcome of the New York talks? Miller: I think so.That's just a social event.What I said was only in general terms, and so did they (the directors of the European Central Bank). McFadden: What do they want? Miller: They were honest about the issues.I wanted to have a talk with Mr. Norman, and we all stayed after dinner, and the others joined in.These gentlemen are very concerned about the way the gold standard works.So they are eager to see monetary easing and low interest rates in New York, which will stop the flow of gold from Europe to the United States.

Mr. Beedy: Is there an understanding between these foreign bankers and the Board of Directors of the Federal Reserve Bank of New York? Miller: Yes. Mr. Beedy: These understandings are not officially recorded? Miller: No.Later, the Open Market Policy Committee held a meeting, and some measures were decided in this way.I remember that according to this plan, in August alone, about 80 million US dollars of bills were bought (issued by the Federal Reserve Bank of New York) (issued base currency). McFadden: Such a change in policy led directly to the most serious financial dysfunction this country had ever seen (1927|1929 stock market speculative frenzy).In my opinion, such a major decision should have a formal record in Washington.

Miller: I agree with you. REP. STRONG: The truth is they come here, they have secret meetings, they eat and drink, they talk, they get the Fed to lower the discount rate, and then they take (our) gold. Mr. Steger: This policy stabilized the European currency but subverted our dollar, is that right? Miller: Yes, the policy is designed to do just that. In fact, the Federal Reserve Bank of New York completely controls the operation of the entire Federal Reserve. The seven-member board of directors of the Federal Reserve in Washington is just a decoration. In less than a day, it was just a social event. The decision of the secret meeting in New York led to the flow of gold worth 500 million U.S. dollars to Europe. There was no written record of such an important decision in Washington. This shows the actual status of the seven-member board of directors.