Chapter 50 4. Abolition of the gold standard: the historical mission entrusted to Roosevelt by the bankers

Under the constraints of the gold standard, the First World War had left European countries heavily indebted. If the Federal Reserve had not been established to mobilize the financial resources of the United States, the scale of the war could only be a local war.World War I feasted international bankers, eagerly awaiting their next meal.However, even after the United States has the Federal Reserve, under the strict constraints of the gold standard, financial resources are already stretched, and it is difficult to support another world-level war. Abolishing the gold standard has become a top priority for bankers in Europe and the United States.

During the five thousand years of evolution of human society, gold has gradually become the final form of currency generally recognized by countries all over the world. The inevitable connection between gold and wealth has long been a natural logic in life.When the people are not optimistic about the government's policies and the economic situation, they can choose to exchange their banknotes for gold coins in order to wait for the bad situation to improve.The free exchange of paper currency for gold has actually become the cornerstone of the most basic economic freedom of the people. Only on this basis can any democracy and other forms of freedom have practical significance.When the government forcibly deprives the power of free exchange of gold and banknotes, it fundamentally deprives the people of their most basic freedom.

Under normal social conditions, the abolition of the gold standard will inevitably lead to serious social turmoil, or even violent revolution. Only in extremely special circumstances, the people will be forced to temporarily give up their natural rights when they are forced to do so. This is why Bankers need serious crises and recessions.Under the threat of crisis and recession, it is easiest for people to compromise, for unity to be broken, for public opinion to be misled, for society to be distracted, and for bankers to succeed in their schemes.Therefore, crises and recessions are regarded as the most effective weapons against the government and the people by bankers, and have been used repeatedly in history.In 1812, the First Bank of the United States was abolished and Rothschild retaliated, the Anglo-American War of 1812 broke out, and finally the US government surrendered and the Second Bank of the United States was established.

In 1837, President Jackson abolished the Second Bank of the United States. Bankers immediately dumped U.S. bonds in London and called back various loans. The U.S. economy fell into a severe recession until 1848. In 1857, 1870, and 1907, in order to force the US government to re-establish a privately owned central bank, international bankers once again acted to create a recession.Finally, a private central bank, the Federal Reserve, was finally established, thus fully controlling the currency issuance rights of the United States. The ultimate goal of the Great Recession in 1929 was to abolish the gold standard and implement a cheap money policy, thus paving the financial path for World War II.

On March 4, 1933, Roosevelt became the thirty-second president of the United States.At the very beginning of taking office, Roosevelt raised the banner of incompatibility with Wall Street. On the day he took office, he announced that the national bank would be closed for rectification from March 6th, and would not reopen until the investigation and liquidation work was completed. This was the first time in the history of the United States that the national financial artery was closed. His pioneering work immediately lifted the spirit of the American people.The world's largest economy has been in an unprecedented state of near total absence of banks for at least ten days.

Immediately afterwards, Roosevelt clung to the investigation of Wall Street that had already begun during the Hoover era, and pointed the finger at the Morgan family.In a series of hearings, Jack.Morgan and his partners were humiliated and disheartened in front of the entire American people. Roosevelt made heavy blows to Wall Street bankers, and he signed the "Glass-Steagall Act" on June 16, 1933, which eventually led to the spin-off of Morgan & Co. Bank and Morgan Stanley, the former can only engage in the traditional business of commercial banks, while the latter can only engage in investment banking.

Roosevelt was also merciless towards the New York Stock Exchange. He successively passed the "Securities Act of 1933" and "Securities Exchange Act of 1934", and established the Securities and Exchange Commission to be responsible for supervising the stock market. Roosevelt's New Deal won widespread praise from the public opinion with thunderous means from the very beginning, expressing the long-standing ill-will against Wall Street bankers in the hearts of the people.Even the Morgan family admits that the whole country is full of admiration for President Roosevelt.What he has achieved in just one week of his presidency is unimaginable. We have never been through a process like it.

The New York stock market debuted in 1933, recording an astonishing return of 54%. The heroic Roosevelt declared passionately: The money dealers have escaped from their thrones in the temple of civilization, and now we can finally restore the ancient true appearance of this sacred temple. The problem is that there is often a huge gap between the historical truth and the public perception deliberately created by the media, and people will inevitably have illusions about the carefully choreographed scenes. Let's take a look at the truth under Roosevelt's vigorous and resolute superficial articles.

After the long bank holiday, many Midwestern banks that had steadfastly refused to join the Federal Reserve never opened again, and large swathes of the market were given up to be reshuffled by Wall Street bankers.Roosevelt's candidate for treasury secretary was the old Henry who mentioned earlier that he had obtained reliable information before the stock market crash in 1929, and he would withdraw from the stock market within three days without hesitating to lose five million dollars.Mo Jinsa's son, Mo Jinsa Jr., is also a Wall Street insider. Roosevelt's selection of the chairman of the Securities and Exchange Commission is even more ridiculous. The first chairman of the SEC was actually the famous speculator Joseph who desperately shorted the stock market before the stock market plummeted in 1929.Kennedy.His assets soared 25 times to more than 100 million US dollars in just four years from 1929 to 1933 after the stock market crash.Joseph.Kennedy is also Jack.Morgan's insider, whose son is the famous President Kennedy.

The sponsor of the "Glass-Steagall Act", which gained a reputation for the spin-off of Morgan Corporation, was the Senator Glass who planned the Federal Reserve bill. The bill did not seriously damage Morgan Corporation. increase, business is more prosperous. Among the 425 employees of JP Morgan, 25 people were allocated to form Morgan Stanley, Jack.Morgan and Ramon maintained a 90% controlling interest.In fact, the two companies after the spin-off are still completely owned by Jack.Under Morgan's control.In 1935, Morgan Stanley won a staggering one billion dollar bond underwriting business in its first year of operation, sweeping 25% of the total market share.In fact, the issuance of bonds by major companies is still aimed at the golden sign of Morgan. Morgan holds the super stick of the Federal Reserve Bank of New York in his hand. Any large company in the United States should be afraid of Morgan.

The most dramatic congressional hearing on Morgan is also the hot news that attracts the public's attention the most.Amidst the hustle and bustle, Roosevelt quietly passed several important decrees on the abolition of the gold standard while repairing plank roads. On March 11, just a week after his inauguration, an executive order was issued to stop banks from converting gold in the name of stabilizing the economy.Immediately afterwards, on April 5, it was ordered that American citizens must hand in all their gold, and the government issued 20.Buy it for six or seven dollars an ounce.Except for rare gold coins and gold jewelry, anyone who hides gold will be sentenced to 10 years in prison and a fine of 250,000 US dollars.The statute was not repealed until 1974, although Roosevelt argued that it was only a temporary measure during the state of emergency.In January 1934, the "Gold Reserve Act" was passed. The price of gold was fixed at $35 an ounce, but the American people had no right to exchange gold.As soon as the people handed over their gold, most of their savings over the years have been decimated!And the preferred clients of the international bankers, who got inside information before the stock market crash of 1929, were able to withdraw large sums of money from the stock market and convert them into gold, which was shipped to London. When it was sold, it was sold for thirty-five dollars an ounce, and it made a huge profit of sixty-nine in an instant.Thirty-three%. When Roosevelt asked the most knowledgeable and blind Senator in the United States, Thomas.When Gore asked his opinion on his abolition of the gold standard, Gore replied dryly: That's obvious stealing, isn't it?Mr President?For Senator Gore's candor, Roosevelt has always had a heart.This senator was the grandfather of the later US Vice President Al Gore. Another congressman, Howard K., spent his life chasing a return to the gold standard.Buffett said in 1948: I warn you that politicians of both parties will oppose the restoration of the gold standard, and those who have made their fortunes here and abroad on the continued devaluation of the United States currency will also oppose the restoration of the system of honest money.You must be prepared to face their opposition with wisdom and tact. The old Buffett, who had a lifelong belief in gold as the ultimate currency, failed to see the restoration of the gold standard, but this belief was deeply imprinted on his son, Warren, the famous stock god today.Buffett's mind.When Buffett saw through the historical inevitability that the fiat currency system would eventually collapse, when the price of silver fell close to the lowest point in history in 1997, he decisively ate up one-third of the world's physical silver stock.It is not a simple and easy task to completely remove the status of gold in currency. This process is divided into three stages.The first step is to abolish the circulation and exchange of gold coins in the United States, and the second step is to abolish the currency function of gold worldwide. The US dollar exchange system established by the Breton system in 1944 replaced the gold exchange system and realized The second step was completed, and Nixon finally completed the third step in 1971. Keynes raised the flag and shouted, the bankers pushed the flames, Roosevelt cheated the sky and finally pulled out the bottle cap of the gold standard, and the twin monsters of deficit finance and cheap debt currency finally struggled out of their tight confinement. Only pay attention to the power in front of you, even after death, the flooded Keynes has a famous saying: In the long run, we will all die, but people's actions and their consequences will always be recorded in history.