Everything's Tied Together....
Anybody noticing how everything "economic" is tied together? The 1929 stock market crash, the "Great Depression," the "New Deal," the
Bretton Woods Conference, The "Great Society"and today's economic disaster with the ongoing bail-outs.... all tied together!! Some of these ties are based on
misbeliefs and outright falsehoods.
BUT, go beyond the basic verbage of each of the plans. You'll see an overall plan unfold that parallels the Democrat Party's basic socialist philosophy which includes social engineering. The more of the American population they can have depending on the federal government for their every NEED, nay..... their every WANT, the easier it is to control that sizeable portion of the population. As you read event after event it should become clear that they have realized their objective, but at a terrible expense. That expense is realized in
a diminished will to work, a diminished will to succeed and a diminished will to be independent. While race seems not a factor in the federal dependency, it appears that some have traded one form of slavery for another; from the plantation owner to the federal "master."
What initially started out as a "hand-up" has evolved into a "hand-out." In the '40s, '50s and early '60s, there was a stigma attached to receiving public handouts; whether justified or not, a certain perseived shame was involved. Initially, recipients had to report to the county office building once a month to receive their benefits, in person-in cash. Later checks were mailed to the recipients mailing address. Still later, the funds were electronically transferred to a debit type card, they didn't have to even "show their faces" to collect
money they didn't earn from the taxes YOU AND I PAID!!
The Wall Street Crash of 1929. Also known as "the crash of '29," this fiasco was precipitated by easy credit
[-sound familiar??]. Around mid-1924 investors began a run-up of The Dow [Dow-Jones Industrial Average;
DJIA] that reached it's peak on 09/03/1929, at 381.17. During this five-year run, everyone was "in the market," businessmen at every level, right down to the lowliest of manual laborers. At the height of the frenzy, even mothers were investing their "milk-and-egg" money. During the early part of the run, brokers began "lending" investment funds to their clients via margin accounts [buying "on margin" involved only putting up a percentage of the stocks' selling price]. The margin rates became greater and greater as time went on, allowing investors to put up less and less of their own money. At it's peak at least 8.5 BILLION had been loaned to buy stocks,
more than the total amount of currency in circulation at the time.
After the September peak in the Dow, the market began falling sharply, for about a month. This
intial leg caused the Dow to lose 17% of it's value. Early in October, 1929, the market began to recover, only to return to a downward trend. After mid-October, the decline
accellerated, culminating with "
Black Thursday [10/24/1929]" when a record 12.9 million shares changed hands. By comparison, now a billion-plus shares are traded on the average day.
On Friday afternoon, October 25, 1929, several prestigious Wall Street bankers met to discuss solutions to the market chaos. They included Thomas Lamont [Morgan Bank], Albert
Wiggin [Chase National Bank] and Charles Mitchell [National City Bank]. They chose Richard Whitney, VP-NYSE, to act on their behalf. Mr Whitney used a tactic that ended "The Panic of 1907," making large-block purchases at prices above the current quote. He succeeded in stopping the slide that day, but it was only temporary.
The following Monday, October 28
th, many more investors sold as opposed to those that bought, causing another slide in the Dow, down 13% for the day. The next day, "
Black Tuesday [10/29/1929]," 16.5 million shares were traded, breaking the previous record of just five days ago. William Durant, the founder of General Motors, joined the Rockefeller family among others and together bought large blocks of stocks to show the public their confidence in the stock market.
Didn't work!! The Dow lost another 12% that day making the total loss for the week $30BILLION. The weekly loss was more than ten times the federal annual budget; far more than the United States spent in all of World War I.
Through the remainder of 1929 and into the early 1930s, the Dow recorded many peaks and valleys. Finally, the market bottomed out at 41.22 on July 8, 1932, stopped a gradual slide that equated to a loss of 89% in value!! The market wouldn't reach it's
pre-crash
breakeven point until November, 1954, over twenty-five years!!
"The Great Depression" was precipitated by the stock market crash of 1929. With the loss of value in American companies, there was no reason to continue with the number of workers, thus started climbing unemployment rates. As with the
DJIA during 1929 and beyond, the unemployment rate had it's peaks and valleys. Rates by the year for the decade of the 1930s:1930-8.7%; 1931-15.9%; 1932-23.6%; 1933-24.9%; 1934-21.7%; 1935-20.1%; 1936-16.9%; 1937-14.3%; 1938-19.0%; 1939-17.2%; 1940-14.6%. The years during World War II fared much better with all U.S. companies geared up for war production, 1942-4.7%; 1944-1.2%; 1946-3.9%.
Although the premise is based on faulty beliefs and information, many believe that President Roosevelt's [FDR] plans and programs brought America out of the depression.
Not So!! Check the unemployment rate numbers-unsatisfactory rates prevailed until the U.S. entered WWII. With our entry into the war, production concentrated on war materiel. The production was ratcheted up so high that most factories ran 24/7/365!! The highest rates in the modern era were under Presidents Reagan [1982-9.7%] and "Slick Willie" [1992-7.5%].
FDR's "New Deal" provided America with many of his "alphabet soup" employment concoctions.
Initially, FDR used the phrase "a New Deal" in his acceptance speech at the 1932 Democratic National Convention:
"I pledge to you, I pledge to myself, to a new deal for the American people." Thus began America's infatuation with wealth re-distribution.
Just days after his inauguration, President Roosevelt's efforts began on March 6, 1933, by proclaiming a 'bank holiday' which ran from March 6 to March 9. At the same time he called congress back to Washington for a special session [lasting from 03/09-06/15/1933]. During that session, congress passed much of the President's program. The program included the Emergency Banking Act[EBA], the Federal Emergency Relief Administration [
FERA], the Agricultural Adjustment Act[AAA] and the National Industrial Recovery Act[
NIRA] and created the Tennessee Valley Authority[TVA]. Also during this session, the president took the U.S. off the "gold standard" to prevent a run on it's gold reserves by those worried about the value of U.S.' currency.
Later New Deal legislation created public housing for workers, unemployment insurance, social security for retiring/retired workers, made federal grants to states to provide welfare for needy families with children, established a legal framework for organizing labor unions, a legal framework for collective bargaining, the Civilian Conservation Corps [
CCC], the Works Progress Administration [
WPA], the Federal Communications Commission [FCC], the Securities and Exchange Commission [SEC], the National Labor Relations Board [NLRB], the Federal Housing Administration [FHA], the Rural Electrification Administration [REA],
[TAKE A BREATH HERE!!] Federal Deposit Insurance Corporation [FDIC], Civil Works Administration [
CWA], Indian Reorganization Act [IRA], Social Security Act [SSA], the Fair Labor Standards Act [
FLSA], the Federal Surplus Relief Corporation [
FSRC] and
[WHEW!!] the Farm Credit Administration. Most of the programs were ended at the beginning of World War II-the unemployment rate had dropped significantly, to the low single digits.
All these Roosevelt employment/public relief programs had a
devastating effect on the U.S. economy, namely the national debt. As a percentage of the Gross National Product [GNP], the national debt climbed from less than 20% under the Hoover Administration to over 40% under the Roosevelt Administration. By comparison, during WWII the national debt reached a peak of near
135% of GNP!!
While the "alphabet soup" programs put many Americans to work, some programs had a detrimental affect on employment and the economy. For instance, many argue that programs such as Social Security, work relief, unemployment insurance, mandatory minimum wages and without special federal privileges for labor unions, the business community would have hired more workers and the unemployment rate during the New Deal years would have been 6.7% rather than the actual 17.2%.
The Bretton Woods Conference [the United Nations Monetary and Financial Conference] was convened on July 1 thru 22, 1944, in Bretton Woods, N.H. This was attended by 730 representatives from all 44 "allied" nations. The primary conditions which necessitated the conference were: The shared experiences of The Great Depression, the concentration of power in a small number of countries and the willingness of a dominant power to oversee global monetary affairs. This conference set up rules, institutions and procedures to regulate the international monetary system. To oversee the regulation, the International Bank for Reconstruction and Development [IBRD] and the International Monetary Fund[IMF] were established. They became operational in 1946, after a sufficient number of countries had ratified the agreements.
The chief features of the Bretton Woods system were; An obligation for each country to adopt a monetary policy that maintained the exchange rate of it's currency within a fixed rate, +/- 1% in terms of gold; the ability of the IMF to bridge temporary imbalances of payments. This system collapsed in 1971 after the U.S. suspended the dollar's conversion to gold.
Many conservatives believe that this conference was an attempted first step toward a one-world government, through a one-world currency. That still may be a high-priority objective by many in the Democrat Party and former members of American royalty.
The "Great Society" First mention of this phrase was during President Lyndon Johnson's commencement speech at the University of Michigan, May 22, 1964. It next [officially] appeared in his State of the Union to Congress, January 7, 1965.
The Great Society's major areas of concentration [with associated legislation] were:
Civil Rights [The Civil Rights Act of 1964; The Voting Rights Act of 1965; The Immigration and Nationality Services Act of 1965];
War on Poverty [the Economic Opportunity Act of 1964; the Neighborhood Youth Corps; Volunteers in Service to America {VISTA}; the Model Cities Program; Upward Bound; the Food Stamp program; the Community Action Program; Project Head Start];
Education [the Elementary and Secondary Education Act of 1965; The Higher Education Act of 1965; National Teachers Corps; Bilingual Education Act of 1968];
Health [The Social Security Act of 1965];
Arts and Cultural Institutions [the National Foundation on the Arts and Humanities Act; the American Council of Learned Societies {ACLS}; the Council of Graduate Schools in America];
Public Broadcasting [The Public Broadcasting Act of 1967; the Corporation for Public Broadcasting; the Public Broadcasting Service {PBS};
Cultural Centers [several pieces of federal legislation created: the John F. Kennedy Center for the Performing Arts; the Smithsonian Institution Art Museum for the National Mall; the Hirshhorn Museum and Sculpture Garden];
Transportation [The Department of Transportation; The Urban Mass Transportation Act of 1964; The National Traffic and Motor Vehicle Safety Act of 1966; the Highway Safety Acto of 1966] and the
Environment [the Clean Air, Water Quality and Clean Water Restoration Acts; the Wilderness Act of 1964; th Endangered Species Preservation Act of 1966; the National Trails System Act of 1968; the Wild and Scenic Rivers Act of 1968; the Land and Water Conservation Act of 1965; the Solid Waste Disposal Act of 1965; the Motor Vehicle Air Pollution Control Act of 1965; the National Historic Preservation Act of 1966; the Aircraft Noise Abatement Act of 1968; the National Environmental Policy Act of 1969].
Anybody seeing the trend here? The more federal funds are made available to advocacy groups, the more people become dependent on the federal government for their very existance. Where does it all stop.... this out-of-control deficit spending.... just to put more on the dole to buy more votes?
Til Nex'time............
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