Saturday, March 19, 2011

Bernanke "Very Sorry" Federal Reserve was Responsible for Great Depression

Bernanke: "Regarding the Great Depression. You're right, we did it. We're very sorry...."
On November 8, 2002, Ben S. Bernanke, at the time a Governor of the Federal Reserve, made a speech in honor of Milton Friedman, an economic historian and professor at the University of Chicago. At the end of his speech he said, "Let me end my talk by abusing slightly my status as an official representative fo the Federal Reserve. I would like to say to Milton[...]: Regarding the Great Depression. You're right, we did it. We're very sorry...."

The Federal Reserve is "very sorry" for Great Depression.

I must say that the above statement is truly significant, considering the results of the Great Depression in the United States and around the world. If there was no Great Depression, then National Socialism would never have become as popular as it became. It was the terrible economic situation in Germany that made Nazism--and Hitler specifically--winners in a series of elections in 1932. The bottom line is: No Great Depression=No Hitler!

No Great Depression = no Hitler!

The Federal Reserve--an institution that is not Federal and is a series of privately owned banks--has total control over the money supply of the United States with no oversight whatsoever. And has had control over it since the presidency of Woodrow Wilson. And, in regards to its responsibility for the Great Depression, Mr. Bernanke says, "We're very sorry...."

But how "sorry" is he? With no Great Depression, there would have been no Hitler as I stated above. But Hitler threw the world into a war that we call World War II. How many people died in World War II as a result of the Federal Reserve's fiscal irresponsibility? Let's take a look at some numbers.
Is the Federal Reserve "very sorry" for the Holocaust?

According to dozens of documents cited in Wikipedia, the number of dead in World War II is between 62,580,670 and 79,298,170. That includes all military and civilian deaths including the Holocaust. But it doesn't stop there. If the Federal Reserve is blamed for the Great Depression, then it must be blamed for the rise to power of Hitler and the results of World War II. The results of World War II include the Cold War and the nuclear arms race. But we must not forget what the Great Depression did to the United States:
  • 13 million people became unemployed. In 1932, 34 million people belonged to families with no regular full-time wage earner.
  • Industrial production fell by nearly 45% between 1929 and 1932.
  • Home building dropped by 80% between the years 1929 and 1932.
  • In the 1920s, the banking system in the U.S. was about $50 billion, which was about 50% of GDP.
  • From 1929 to 1932, about 5,000 banks went out of business.
  • By 1933, 11,000 of the U.S. 25,000 banks had failed.
  • Between 1929 and 1933, U.S.GDP fell around 30%, the stock market lost almost 90% of its value.
  • In 1929, the unemployment rate averaged 3%.
  • In 1933, 25% of all workers and 37% of all non-farm workers were unemployed.
  • In Cleveland the unemployment rate was 50%; in Toledo, Ohio 80%.
  • Over one million families lost their farms between 1930 and 1934.
  • Corporate profits had dropped from $10 billion in 1929 to $1 billion in 1932.
  • Between 1929 and 1932, the income of the average American family was reduced by 40%.
  • Nine million savings accounts had been wiped out between 1930 and 1933.
  • 273,000 families had been evicted from their homes in 1932.
    • There were two million homeless people migrating around the country.
    • Over 60% of Americans were categorized as poor by the federal government in 1933.
    • In the early 1930s, more people emigrated from the United States than immigrated to it.
    • With little economic activity there was scant demand for new coinage. No nickels or dimes were minted in 1932–33, no quarter dollars in 1931 or 1933, no half dollarsfrom 1930–32, and no silver dollars in the years 1929–33.
    • The U.S. government sponsored a Mexican Repatriation program which was intended to encourage people to voluntarily move to Mexico, but thousands, including some U.S. citizens, were deported against their will. Altogether about 400,000 Mexicans were repatriated.
    • New York social workers reported that 25% of all schoolchildren were malnourished. In the mining counties of West Virginia, Illinois, Kentucky, and Pennsylvania, the proportion of malnourished children was perhaps as high as 90%.
    • Many people became ill with diseases such as tuberculosis (TB).
    Is the Federal Reserve "very sorry" for Hiroshima and Nagasaki?
    If the Federal Reserve is indeed "very sorry" for the Great Depression perhaps it should also take responsibility for throwing our economy into recessions and mini-depressions every ten years. It makes no sense that a "democracy" has private bankers and banks--whose main concern is making themselves a profit--controlling the money supply of the United States. When the government and the citizenry of the U.S. lose money the Fed makes money! The Federal Reserve made a profit of $45 billion in 2009 and $78.4 billion in 2010.
    So how "sorry" is Mr. Bernanke after all?

    Copyright (C) Eric Brothers. All Rights Reserved.

    1 comment:

    1. I think this theory is a bit of a stretch. I believe the Great Depression was caused by the same thing as the current dip is the economy. This country is run by people who are out of touch with the aveage workers and are making uninformed decisions.

      Ask Ben Bernanke the price of a loaf of bread or how much it would cost to get a couple of shrits dry-cleaned. I'll bet he wouldn't know because he never actually had to make that purchase himself.

      ReplyDelete

    I look forward to reading your comments.