The Great Depression

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The Great Depression was a period of economic weakness around the world lasting from around mid-late 1929 until WWII for the USA and even later for Europe. It's causes are still widely debated, the most common views being it was the fault of the US Federal Reserve, the effects of maintaining the Gold Standard or the effects of market saturation and over speculation on the stock markets.

From a conspiracy point of view, there is evidence to suggest that the Great Depression was caused deliberately by the owners of the Federal Reserve in order to incur a huge national debt from the US government and peoples and to force the people to demand government intervention which at the time was seen as being highly undesirable.

1 Conspiracy Theory
2 Gold Standard Conspiracy
3 See Also
4 External Links
5 Related Discussions at abovetopsecret.com

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Conspiracy Theory

The main conspiracy theory regarding the Great Depression is as such: The Federal Reserve is under the control of the international banking elite who helped create it along side the famous philanthropist J. P. Morgan in 1913. Using their power, they deliberately causes economic recessions to rack up a national debt to the Federal Reserve, and thus ultimately themselves. This was done by having those bankers in on the conspiracy secretly withdraw from the stock markets, then spreading rumours that the market was insolvent or about to crash, causing investors to also withdraw, bankrupting businesses and prompting bank runs.

Economically speaking, the Federal Reserve should then have increased the money supply in order to stimulate the economy and help it recover, but instead each time they would actually contract the money supply, making the recession worse. Critics of the conspiracy theory explain these actions as attempts to prevent inflation or inexperience of the Federal Reserve to deal with these situations. Others suggest that the obligation to maintain the Gold Standard was preventing the increase of the money supply, though this doesn't explain why it was contracted on it's own.

Nonetheless, this practice was supposedly practiced over the years up until l929, by which time the market had become so credit based and over valued that a market crash would cause devastating damage to the economy. Seeing this, the international bankers withdrew from the market in the summer of 1929, along with other shrewd businessmen who sensed things had got out of hand though perhaps were unaware of the bankers' intentions. Then in the Autumn of 1929, rumours were spread around Wall Street and investors suddenly lost all confidence and dumped their stocks on the market. As a result, the stocks of most businesses lost their value and the companies were quickly forced in bankruptcy.

With more and more bankruptcies being declared, banks realised they did not have enough money to secure their clients investments are were forced to recall loans and mortgages to raise capital. With this, the people of America who had been so used to buying on credit or 'On The Margin' were stripped of their wealth, wealth which would eventually find it's way back to the international bankers who proceeded to buy as many businesses and banks as they could while the price was low. The recession lasted until around 1931, and seemed to be about to end when suddenly the Federal Reserve contracted the money supply once again, pushing the economy over the edge and beginning the Great Depression in America.

Now with the people in desperation the government was able to overcome their view of intervention, and thus begun the chain of welfare and state control that would eventually lead to today's highly centralised US government.

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Gold Standard Conspiracy

As well as the above explanation, some theorists point out that the international bankers wanted to introduce a fully credit-based system since it would make market manipulation easier and allow for more of the kind of recession prompting they had done before the Great Depression. It is thought that these international bankers played a key role in removing the Gold Standard, meaning the US dollar was no longer backed by gold, but instead was given a value by the Federal Reserve. This would allow the bankers to control inflation as they saw fit, since now they could alter the money supply at any time.

However, most economists would argue that the removal of the Gold Standard was the the only way the government could escape the depression. Without the Gold Standard the option to increase the money supply became available and allowed monetary policy to take shape in order to steer the economy away from recessions. Of course, a conspiracy theorist might reply to this saying that monetary policy is exactly what the international bankers want since it means the market is more open to manipulations and made them able to exploit this for their own gain.

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