The FED Caused the Great Depression

You can't claim we had "robust growth" just because of the annual % change of GDP for three years in a row. A 13% percent increase from crap-GDP level #1 to crap-level GDP #2 means nothing. Unemployment was still sky high and GDP did not excede pre-Depression levels until 1937. And then, 1938 saw a recession.

You cannot claim to have "robust growth" when over 1/6 of the country was to remain unemployed for the next 7 years.

The distorted conclusions you draw from statistics astounds me. My engineering professors warned us about people like you.

 

Real GDP growth averaged 7.34% from 1934 to 1940.

That is "robust" by any measure.

GDP is a commonly used measure of economic performance. Nothing astounding about it at all.

 

Absolutely correct:

"...the Federal Reserve expanded the money supply by more than 60 percent from mid-1921 to mid-1929.[2] The flood of easy money drove interest rates down, pushed the stock market to dizzy heights, and gave birth to the “Roaring Twenties.” By early 1929, the Federal Reserve was taking the punch away from the party. It choked off the money supply, raised interest rates, and for the next three years presided over a money supply that shrank by 30 percent. This deflation following the inflation wrenched the economy from tremendous boom to colossal bust."

Link

I think it was intentional.

Absolutely. They want to weaken the dollar further and then make the world reserve currency a true "one world" currency. Just the next step in the globalist's NWO plan.

 

The fed put out 60 times more money and called in their loans in 24 hours.

The Fed did exactly what it was designed to do. Its a private for profit bank.

Our Founding fathers fought the same bankers at our birth, but they got us in 1913

 

Except for the fact the Board that makes its policies are appointed by the president, and it remits it's "profits" to the US Treasury, that's about right.

 

Saying "the economy grew robustly" is not an accurate statement because over 1/6 of the country remained unemployed. You can say that GDP grew. But robustly? I don't think so.

Statistics are statistics. But they can be easily manipulated to draw false conclusions as you have done.

 

Unemployment fell from 25% to 14% between 1933 and 1937, or lower if you count Govt temp employees.

That is still high unemployment, but does not indicate the economy was not growing robustly. It just shows how bad the great depression got to be.

I've accurately presented the GDP figures from the BEA. GDP is the common measure of economic activity. Anyone can make there own conclusions on the data.

But to me, the 7.3% average real GDP growth rate after FDR took office (it is much higher if we include the WWII years) is robust by any measure.

I stand by my post.

 

For busts, the insiders though take their profits before the bust, because they know before it happens. Thats the power of an insider and owning the bank.

 

I dont think the FED intentially caused the great depression but I do believe they prolonged it!

 

That's pretty vague.

 

No, but you must correct the root problem before you can get lasting change. The Fed is the cancer. You can correct other issues, but if you don't fix the financial system it will eventually destroy you.

 

Since the Fed was set up, the US became the world's economic super power, helped win two world wars, and has one of the highest standard of living in the world.

What a (*)(*)(*)(*)ty record.

The cancer started in 1981, when we started electing panderers who ran up the debt with tax cuts and military spending they couldn't afford.

 

How would you fox the financial system?

 

It's called third grade history

lol

Everyone knows capitalism caused the Great Depression

 

Hmm, seems more of an economic question than a history question. So, elaborate a bit if you can?

 

The Soviet Union could make a claim to quite a few of those things at one point....was Communism a success?

This should be good, how exactly did Capitalism cause the great depression?

 

Which of those claims could the SU legitimately make?

Focus on short term profits at the expense of long term risk.

 

Helped to win 2 world wars and was an economic super power.

That is not what Capitalism is about. If I didn't know better I would think you are describing the reason inflation is so desireable. It was after all, monetary inflation and the mal investment that results from it that caused the great depression.

 

I'm not sure if the SU is fairly characterized as an economic super power, and it did not win WWI.

Making profits is not what capitalism is all about?

How did it cause mal investment?

The gold standard helped insure the great depression was great.

 

You mean Reagan? Did you know the Liberals lied to Reagan and promised to cut 2 dollars of spending for every 1 dollar Reagan raised in taxes? Reagan agreed to some tax increases and the Democrats NEVER cut spending as promised. Did you know that EVERY budget Reagan submitted to Congress was DOA because the heavily Democrat House wanted to spend a lot more than Reagan? Did you know Reagan wanted to END the unconstitutionally Democrat created departments of Energy and Education which generates no energy, and educates no children? Also, did you know that Obama is running much larger deficits than Reagan or Bush, really larger than any other President in US history regardless of peacetime or war?



You should really study up on history. It would make your posts more interesting, and I'm sure less embarrassing.

 

The SU was certainly an economic super power in its time.

Capitalism is simply the private ownership of the means of production at its core.

The exact same way that handing out credit cards with million dollar limits to everyone in America would.

I would argue that The Fed knowingly expanding the money supply beyond which could be supported by gold reserves made it great. It's not like the amount of gold available was a secret...they knew...and chose to ignore it.

 

Thanks for sharing, Dr. Righteous.

The following discussions of the misguided and destructive policies of Woodrow Wilson are verg good.

You know a great deal about this subject. Do you agree wtih these conclusions?

James Cessna

 

And why would that cause them to put their money into a speculative bubble?

Was there a problem with inflation in the 1920s? Not that I'm aware of. If the money supply had been expanded too rapidly there would have been inflation.

 

I mean 1981, when Reagan was president. It wasn't the Dems who wanted those tax cuts and military buildup that started the cancer.

Year - Debt % GDP
1946 121.0% <- Cancer bad from WWII.
1947 105.7% <- Greatest generation paying 91% top tax rates.
1948 93.6% <- Cancer decreasing.
1949 94.7%
1950 87.5%
1951 75.2%
1952 72.3%
1953 70.1%
1954 73.3%
1955 67.7%
1956 63.3%
1957 59.6%
1958 60.4%
1959 57.2%
1960 55.1%
1961 54.3%
1962 51.7%
1963 50.0%
1964 47.8%
1965 44.6%
1966 41.8%
1967 41.4%
1968 39.3%
1969 37.4%
1970 37.5%
1971 37.6%
1972 36.3%
1973 34.0%
1974 32.8%
1975 35.2%
1976 35.8%
1977 35.4%
1978 34.4%
1979 33.0%
1980 33.4%
1981 32.9% <- Cancer in lowest remission. Reagan tax office. Cuts taxes, spends on military
1982 36.8% <- Cancer returning. Recession.
1983 39.9%
1984 42.3% <- Recession over, cancer still growing.
1985 46.1%
1986 47.6%
1987 49.6%
1988 51.0%
1989 52.1%
1990 55.7%
1991 61.2%
1992 64.1%
1993 66.2% <- Clinton takes office, passes tax increase, trims military spending.
1994 66.2%
1995 67.1% <- Cancer hits peak
1996 66.7% <- Cancer going back into remission.
1997 65.0%
1998 62.8%
1999 60.5%
2000 57.0%
2001 56.5% <-Bush takes office. Slashes taxes, increases military spending
2002 58.5%
2003 60.9% <- Economy growing, but cancer still growing.
2004 62.2%
2005 62.8%
2006 63.5%
2007 64.0%
2008 69.4% <- Great Recession.
2009 83.5% <- Obama cuts taxes and spends to avoid depression.

 

Woodrow Wilson was definitely one of our worst Presidents. He gave us the unholy trinity of the income tax, the "Federal" Reserve, and an interventionist foreign policy to make the world safe for democracy. All have been disastrous so far, and haven't even fully played out yet. Unfortunately, they will most likely lead to the complete collapse of the U.S. economy and World War III.