Chapter 45 9. The real conspiracy behind the Great Recession

There can be no doubt that the stock crash of 1929 was settled at the conclave of 1927, with interest rates artificially low in New York and interest rates in London beneficially high, and the The interest rate differential caused U.S. gold to flow to the U.K. to help the U.K. and other European countries return to the gold standard. In fact, European financiers have long known that the efficiency of plundering wealth by means of inflation is far greater than the interest income obtained from lending.Using gold as the cornerstone of currency issuance, and paper money can be freely converted into gold, all of which will undoubtedly greatly restrict the effectiveness of bankers' free use of inflation, a high-efficiency weapon.What is puzzling is why the European financial community represented by British bankers at that time wanted to restore the gold standard?

It turned out that international bankers were playing a big game of chess. The First World War ended with the defeat of Germany. Of course, the huge war indemnity cannot be borne by the German Rothschild family and the Warburg family bank. Not only that, they also have to make a fortune for the country.Therefore, the first move is for the German bankers to activate inflation, the wealth meat grinder, to quickly plunder the savings of the German people. Human beings have seen the power of hyperinflation for the first time.From 1913 to 1918, during the war, the German money supply increased by eight.Five times, the Deutsche Mark has only depreciated by 50% relative to the US dollar. Since 1921, the amount of money issued by the German Central Bank has been in a volcanic eruption. In 1921, it increased five times compared to 1918 In 1922, it increased tenfold compared to 1921, and in 1923 it increased by 72.53 million times compared to 1922.From August 1923, prices reached astronomical levels, with a loaf of bread or a postage stamp costing as much as 100 billion marks.German workers had to be paid twice a day and had to spend the money within an hour of receiving it.

German bankers bloodbathed the savings of the middle class and reduced a large number of people in the mainstream of society to abject poverty overnight, thus laying the foundation for the Nazis to come to power in the future and deeply planting the Germans' hatred of Jewish bankers.The German people suffered far more tragically than did France after their defeat in the Franco-Prussian War in 1870, and by 1923 all the incentives for the next, more tragic world war were in place. When the wealth of the Germans has been looted almost, the German mark should also stabilize.Under the dispatch of international bankers, the gold of the American people became a lifeline for stabilizing the German currency.The second move is the turn of the British bankers to flex their muscles.Due to the frequent attacks by German submarines in the Atlantic Ocean after the outbreak of the First World War in 1914, British ships carrying gold could not leave the port. As a result, the Bank of England had to announce the temporary suspension of gold exchange, and the gold standard of the British pound was dead in name only.

In 1924, Churchill, who was later famous in Britain, became the British Chancellor of the Exchequer. Churchill, who had no sense of financial affairs, prepared to restore the gold standard under the clamor of London bankers. authoritative position.On May 13, 1925, Britain passed the Gold Standard Act.At that time, Britain's national power had already been severely damaged by the intense consumption of the war, and its economic strength was far inferior to that of the emerging United States. It was no longer even a dominant player in Europe. The forced restoration of the gold standard would inevitably lead to a strong pound, which would severely hit the already growing United States. The loss of competitiveness of British exports will also cause economic consequences such as falling domestic prices, shrinking wages, and a sharp increase in unemployment.

At this time, a generation of master Keynes was born.Keynes, who had represented the British Treasury at the Paris Peace Conference of 1919, was adamantly opposed to harsh terms for Germany and resigned in protest.He advocated the abolition of the gold standard, forming an incompatible situation with the power of bankers in London.At the MacMillan Commission where the British government investigated the feasibility of the gold standard, Keynes spoke impassionedly about the disadvantages of the gold standard. In his view, gold was just a relic of barbarism and a constraint on economic development.Norman of the Bank of England did not show weakness, insisting that the gold standard is indispensable for honest bankers, no matter how heavy the burden on the United Kingdom, no matter how many industries are severely damaged, otherwise how can it reflect the super credibility of the City of London bankers.The British people are confused.Like the situation in the United States, London bankers also have a bad reputation among the people. Since they are supported by the bankers, it must be bad, and the point of view that slams the bankers should be oriented towards the people.

That's the good part of the play. Keynes, whose background is not simple, played the role of pleading for the people, while the bankers appeared as golden defenders. This double reed act was superb, and public opinion and public opinion were easily manipulated in this way. Sure enough, Keynes' predictions and bankers' plans did not follow. The British economy plummeted after returning to the gold standard. The unemployment rate soared from 3% in 1920 to 18% in 1926. Various strikes followed one after another, and the political situation fell into a turmoil. Chaos, the British government is facing a serious crisis.

And what the bankers want is a crisis! Financial reform can only be promoted by creating a crisis. Amid strong calls for law changes, the Currency and Bank Notes Act of 1928 was passed, which smashed the 84-year-old Israeli national debt held by the Bank of England. The 1844 Act stipulated that the Bank of England's issuance of sterling with treasury bonds as collateral was 19.75 million pounds, and the rest of the sterling banknotes must be issued with gold as collateral.Issuing debt currency against treasury bonds and bypassing the pesky gold constraints, like the up-and-coming Fed, is a realm that haunts London bankers.The Bank of England issued £260 million in debt just a few weeks after the new bill was passed.The new bill also empowers the Bank of England to issue unlimited debt pounds in emergency situations, subject to the approval of the Treasury and Parliament after the fact.The Federal Reserve's almost unlimited power to issue currency was finally acquired by the Bank of England.

The third move is that the fat sheep of the United States has reached the season of shearing its wool again.After the secret meeting in 1927, due to the low interest rate policy of the Federal Reserve, a huge amount of gold worth 500 million U.S. dollars was outflowed from the United States. After the Federal Reserve suddenly raised interest rates in 1929, banks lacked gold reserves and could not effectively issue credit. , the strong fat sheep in the United States went into shock due to extreme blood loss.International bankers then swarmed up and bought blue-chip stocks and other high-quality assets at an ultra-low price of a fraction, or even a few tenths, of the normal price.Senator McFadden described it this way: In one state alone, 60,000 properties and farms were recently auctioned off in a single day.In Oakland County, Michigan, 71,000 homeowners and ranchers were evicted.Something similar is happening in every county in the United States.

In this unprecedented economic catastrophe in the United States, only a few people in the innermost circle knew in advance that the biggest speculative drama in American history was about to end. These people were able to sell all stocks in time and instead held a large amount of government bonds. Maintained close ties with the Rothschild family of London.People outside this circle, some even the ultra-wealthy, have not been spared.This circle included JP Morgan and Kuhn-Rayper & Co., as well as their chosen priority clients, such as partner banks, prominent industrialists with whom they were friendly, important politicians, and rulers of friendly countries.

When Banker Morrison resigned from the Fed, Newsweek of May 30, 1936 said of him: The consensus was that the Fed had lost a capable man.In 1929 (before the stock market crashed), he called a meeting and ordered his banks to stop lending to securities dealers by September 1.So, ride the wind of the ensuing recession. Joey.Kennedy's net worth increased twenty-five times from $4 million in 1929 to $100 million in 1935.Bernard.Ballou sold all his stocks and moved to Treasury bonds before the crash.Henry.Mokinsa rushed to Bankers Trust a few days before Black Tuesday (October 29, 1929) and ordered his firm to sell all the assets worth a total of sixty million dollars within three days. stock.Confused, his staff suggested that he gradually liquidate the position over a period of several weeks, which would result in at least an additional five million dollars.Henry.Mo Jinsa was furious and yelled at his subordinates: I didn't come here to discuss with you!Do as I say!

When we look back at this period of history after nearly 80 years, we still have to marvel at the IQ of these international bankers. They are undoubtedly the most intelligent group of human beings. Such a meticulous design, such a courage to play with the world in the palm of the hand, is really amazing.Even today, most people are completely in disbelief that their fate is actually in the hands of a very small number of people. After the international bankers had a good harvest of wool, Keynes's idea of ​​cheap money became the latest wealth harvester for bankers, and Roosevelt's New Deal led by them opened a new harvest season for bankers.