Could the Great Depression happen again?

Answer 1

It sure seems like it could sometimes! However, the main reason why The Great Depression occurred is because there was a "run" on banks, which caused them to fail on a wide scale basis. A run occurs when many people panic and withdraw all of their money at one time. This probably wouldn't happen today because banks are only required to keep a very small percentage of actual money in their vaults compared to the actual total of what the account-holders may have on paper. My bank has a statement on deposit slips that my money may not be completely available for withdrawal. Now I don't have a lot of money! However if I had, say 100 million dollars in my bank, I may only be able to withdraw a very small portion of it (as cash), because the bank only is required to have a very small portion of it in their vault.

Answer

Search >Gary Allen's None Dare Call it Conspiracy, Chapter 3<

In the 1800s, European bankers and their agents in America wanted a central bank controlled and in private corporate hands.

To get their wish, they engineered a bank run in 1907 to frighten the citizenry to demand that US Federal government actions be taken to protect their deposits from such losses. J. P. Morgan is credited with saving the US monetary system by injecting large amounts of credit into the system, however, non-mainstream historians claim that he was an agent of the very people who triggered the bank runs in the first place. (When J. P. Morgan died, it was found that he actually only owned a fraction of what was thought--figures vary from 18 to 25 percent).

In 1910 seven bankers representing the large New York banks, and a couple of European banks secretly met at the Jekyll Island, Georgia resort of J. P. Morgan presumably for a hunting or fishing trip, but actually to craft a bill to be introduced in Congress to create another central bank for the USA. The first bill did not pass, but a bill virtually identical to it passed after the next US Federal election. The bill was said to "break the grip of the money trust."

Search >"break the grip of the money trust" federal reserve 1913<

It was the Federal Reserve Banking act of 1913. Instead of the US Government printing their own money, interest free and circulating it into the economy, a privately owned Federal Reserve Banking System would issue loans, receive US Treasury Notes (bonds) in exchange for the principle, and be paid interest on the loans created from nothing. Actually printing up the legal tender US Federal Reserve bank notes is then just a trivial exercise since most money is not circulated as legal tender, but instead transferred between banks via checks.

Search >"Federal Reserve" "G. Edward Griffin" "Jekyll Island"<
Video Search >"Federal Reserve"<
Video Search >"The Money Masters"<

All money subsequent to the 1913 Federal Reserve Banking act would be borrowed money. In order to pay the interest on that borrowed money, the US Federal Income Tax act was passed virtually at the same time. To enforce tax payment, the IRS was established. Because a central bank printing paper money was unconstitutional, amendments to the US Constitution were written, but these amendments never passed in the majority of the US states--so the amendments were never ratified into law. According to the US constitution, the coining of money is the responsibility of congress.

The Rothschild banking family of Europe were the real money powers behind virtually all of the banks in America. Many non-mainstream historians claim that the Rockefeller family was able to gain monopoly in the oil business, and other industrialists in their own markets similarly, by huge loans of money to buy out their competitors, or bribe underhanded deals with shippers and suppliers and government officials, that would put their businesses on top by having lower expenses and selling to the customer at a price that would undercut the competition.

Search >Rockefeller Rothschild I.G. Farben<

While publicly saying that the intent of the central bank of the Federal Reserve System was supposed to stabilize prices, and keep inflation in check, the reverse was actually true.

When the Fed wanted to create a boom, they would flood the economy with a huge supply of credit, plus money either directly or by buying up Treasury Notes (bonds), and would lower interest rates . This creates a very liquid market where trade, R & D flourished, and the stock markets soared, employment would be near full, and money flowed to where ever there was a good idea. Soon inflation would appear due to the over-supply of money in the system.

When the Fed wanted to create a bust / depression, they would tighten the money supply, cut off credit, increase interest rates, and sell Treasury Notes to anyone holding US dollar currency including foreigners--extracting dollars from the economy from where ever they could do so. Liquidity would disappear, smaller banks would have to call in their loans, bank runs would happen, and working capital for businesses disappeared, non-essential business activities would have budgets slashed, unemployment rose as lots of people would have to be laid off. When people were laid off, they hunkered down and would not spend money on anything but essentials. More workers were put out on the streets due to lack of business, which further caused the economy to contract. The money in circulation continuously declined year over year because of continuous contraction policies instituted by the Fed. Initially hundreds of dollars per month per capita was available, but after years of contraction, only 6 dollars per month per capita were available. Deflation would then occur due to downward pressure on pricing.

Every few years the Fed would cause an economic business cycle to pump real wealth out of the economy back into the hands of the elite wealthy people who owned the banking system, bankrupting smaller banks and taking them over.

Search >How a Group of International Bankers Engineered the 1929 Crash<

According to web, and video sources, Joseph P. Kennedy was warned in the summer of 1929 to take all of his money out of the Stock Market, placing it into gold, silver, and cash.

Search >"Joseph P. Kennedy" 1929 crash warned<

In the years subsequent to the crash, Joseph P. Kennedy, the father of JFK, RFK, and Teddy Kennedy, had his wealth climb in value from 4 million dollars to over 100 million.

The actual events of the 1929 crash and depression were that the over night broker call loans were all called in and not permitted to be renewed. Brokers and their customers were caught off guard and had to sell everything they had. During the depression, US government policy was to keep prices high for food by having farmers create an artificial food shortage by destroying / burning crops, and live stock--this further caused economic trouble and starvation of many people.

Search >1929 crash broker call loans<

Another trick of the financial elite is to fund both sides of wars, and make the victor promise to pay the debts of the loser.

After a few years into WW2, America got out of the depression. But the international bankers had forced US President Franklin D. Roosevelt to confiscate all the privately held gold in America, melt it down, and haul it off in trains to Fort Knox, Kentucky. FDR died shortly before the end of the war, and his Vice President, Truman dropped the atom bombs on Japan. Every few years the amount of gold in Fort Knox was to be "fully audited," however, this practice was stopped in the 1950s after the Eisenhower administration, and non-mainstream historians believe that only a small fraction (about 12% or so) of the original gold remains there because the majority was shipped off to London (European bankers).

Search >Eisenhower "Fort Knox" audit gold 1967 Johnson<

In 2006 the Bilderburg Group had a meeting in the Brookstreet Hotel in Kanata, Ontario, Canada. The Bilderburg Group are representatives of the largest financial concerns on the planet. Information from the planning sessions was leaked to a small group of alternative / non-mainstream media reporters. The documentary video taken at the time outlined future events that would take place in the next 3 years. Gas prices would rise, the sub-prime mortgage market would be blown out, and a credit crunch would then be created to crash in on all the suckers still left with money in the stock market.

Video search >"Alex Jones" "The Obama Deception"<

A Google video item produced by the John Birch Society seems to outline the recent history of the new world order conspiracy in politics and the media.

Video search >"behind the big news: propaganda"<

It details how news media organizations have tried to sway public opinion and votes by slanting and biasing news coverage by either omitting key information or by telling lies. The claim is repeated by other non-mainstream historical interest groups too that the people behind this are the Rockefeller / J. P. Morgan group who eventually formed the Council on Foreign Relations.

Indications are that in some ways the current depression in which we find ourselves could get worse than the original by having inflation at the same time as a depression. This is due to the huge relatively recent increases in the money supply done by Alan Greenspan and Ben Bernanke, while at the same time there is a credit crunch caused by the derivatives crash on mortgage based credit markets.

Search >double money supply "Ben Bernanke" "Alan Greenspan" stagflation<

The derivatives market on these sub prime mortgages (and other things) were enabled back in 1999-2000 when a law was enacted to repeal laws from the 1920s that expressly forbid such trading.

Search >Gramm Leach Bliley "Commodity Futures Modernization Act" 1920s Mortgages OR loans OR backed-securities<

Supposedly over one quadrillion dollars have been "bet" on the derivatives market--this amount was bet by investment bank traders on mortgage backed real estate loan repayments, and is more than several times the entire world economy. The traders who won the bets who said that lots of people would default on their mortgages knew the plans laid by the Bilderberg Group in 2006 and so are "guilty of insider trading."

Search >quadrillion dollars derivatives mortgages<
Video search >Amenstop productions<

Answer 2

Yes, it almost did in 2008. Anytime Wall Street risks more money than it has on hand, and the investment goes bad, catastrophe occurs.