As a result of the machinations of the Insiders, in 1933, Americans were no longer allowed to own gold. The government confiscated ALL gold from individuals and companies and invalidated the “gold redemption” clauses in all obligations whether governmental or private. After the government had taken all the gold, President Roosevelt arrogantly raised the price of gold from $20 an ounce to $35 per ounce. This gave the government an immediate calculated profit of at least $2.8 billion.
Note that while the U.S. could easily force Americans to accept the new fiat money or go to jail, it had NO such power over foreigners. It could not force them to accept junk money in international trade. Therefore, the foreigners could do what Americans were forbidden to do: redeem the new paper money for gold! Americans, to this day cannot do so, but foreigners CAN!
Now that the insiders had a firm control over the economy, in October, 1942, they had the War Production Board issue Order No. L-208. This outrageous piece of governmental tyranny, made it completely illegal for gold miners in this country to get gold mining equipment which they had already ordered, or which they might order in the future. Further, it made owners of existing gold mines subject to a $10,000 fine and possible prison terms if they used the gold mining equipment they already owned. It should come as no surprise that this brought gold mining in this country to an immediate halt.
While Americans at the time, and even today, were unaware of what was happening, much of this idle gold mining equipment was then shipped off to Russia! Major George Racey Jordan, in his book “From Major Jordan’s Diaries” documented the shipment of $66 million worth of gold mining equipment to Russia through the terminal at Great Falls, Montana. This went by air. How much might have been shipped by sea he had no way of knowing.
While the WPB Order #L-208 was issued by Donald Nelson, Chairman of the WPB, it was actually written by Harry Dexter White, later proved by the FBI to be a Communist agent. During the war years, according to Dan Smoot, in his book, “The Invisible Government, pg. 36, “Harry Dexter White virtually ran the U.S. Treasury Dept. under Presidents Roosevelt and Truman.”
Even after White had been exposed as a Communist, our government leaders did NOTHING to reverse the policies which he had instituted. In fact, just before he left office, on January 14, 1961 President Eisenhower issued an Executive Order making it illegal for Americans to even own gold overseas! Some astute Americans, looking at the disastrous inflationary policy of their government had started to buy gold overseas and store it in foreign banks. Such real wealth tends to make people independent. This the Insiders could not allow.
The inflation which the government now embarked on was (and is) an invisible tax on the American people. They DO know what they are doing. John Maynard Keynes, in his book, “Economic Consequences of the Peace,” wrote: “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens….Lenin certainly was right.”
Let’s return to the “boom and bust” of the 1920s. Up until 1921, the Insiders had been buying up the stocks of American corporations at the going LOW prices of that time. Once the Fed started inflating the money supply they started up the propaganda machine: “Buy Stocks!”, “Everyone is getting rich in the market!”, “No one is losing money, this is the way to get rich!” And the American people began to buy the story AND buy stocks. Gradually at first and then at a breakneck pace, the prices of stocks went skyrocketing upward. And the Insiders now sold the stocks they had bought cheaply to these new sheep who were demanding to be sheared.
People became obsessed. They were mortgaging their homes, insurance policies, farms, etc. to get money in order to get “their share” of the new Bonanza. This went on until June of 1929, then the Insiders quietly began to get completely out of the market so that when the Crash of ‘29 occurred their funds were safe.
Suddenly there was total panic! People were trying to sell their shares of stock at ANY price. Naturally this drove the market down even faster. The history books about the Crash tell us that EVERYONE was losing money in the market!
Psssssst! Come here! Lean over so that I can whisper in your ear. This is top secret information which stock brokers never tell their clients and which economics professors somehow fail to teach their students. Are you ready for this? The dirty little secret is that whenever someone LOSES money in the stock market, SOMEONE ELSE GAINS money! Somehow people never seem to think of this.
Those in the know, who had sold out at or near the peak now started to buy up the stock which people were willing to sell for pennies on the dollar. People were being wiped out financially, losing their homes, businesses, farms, etc. It was really a tough time to be an American.
With the election of Roosevelt in 1932, Americans looked for things to improve. One of the early moves of the Roosevelt administration was to ram the National Recovery Act, the NRA through a subservient Congress. This gem of legislative sleight of hand said, in essence, that the reason factories were closing and throwing people out of work was that the businesses were not making enough money. Therefore, the law said that the makers of any given product had to RAISE their prices and could not sell that product below a new HIGHER price dictated by the government. Thus, the producers would make more money, factories would stay open and people would have jobs. What a glorious solution to the country’s economic problems!
Aaaaah, but wait! My little grey cells tell me that there is a flaw in that scheme. If people are out of work they don’t have much money to spend. If you raise the price of goods are they going to buy more or less? Aha! And if they buy less are more factories going to be open or closed? Aha, again! And if factories are closed are they going to be more expensive or cheaper to buy? Aha, a third time! It was not a National Recovery Plan, it was a NO recovery plan.
The Insiders had vast amounts of money in the banks from selling in the rising market and buying in the falling market. But money in the bank is not “working.” What better use for that money than to buy up all these factories which were now sitting idle and were very inexpensive to buy.
People have been sold the idea the Roosevelt brought the country out of the Depression. However, the cold hard fact of the matter is that the economy was as bad and as many people were out of work in 1938 as had been at the time Roosevelt was inaugurated. During the period of 1932 to 1938, there was a MASSIVE transfer of ownership of factories, homes, farms, etc. from the hands of the original owners over to ownership by a relatively small number of extremely wealthy cartels.
And, if you believe that this all came about accidentally, I have a bridge in Brooklyn, NY that I would like to sell to you! Or maybe I could get you to invest in a plan I have to cure the water shortage in Arizona by shipping in dehydrated water from the coast. Just imagine how much dehydrated water you can get into a tank car. Why the shipping cost would be virtually nothing at all! Or, if you don’t like either of those ideas, perhaps you would like to put your money into a plan I have to hook onto the top of a lot of the dry oil wells which have been drilled over the years. We will pull the holes up out of the ground, cut them into suitable lengths and sell them as prefabricated post holes. In fact, we could sell fence posts already IN their own holes. Think of the savings in shipping: if we are shipping 8 foot posts with 2 feet already in the hole, the effective shipping length would be only 6 feet and we could get 33% more posts onto a truck. Listen to me and you could make a fortune!!! Well, one of us would!
Damn, I missed my calling, I should have been a New Dealer. I was around back then!
(I am indebted to Dan Smoot, the late Gary Allen and to Doctor Stuart Crane for much of the information put together above. I take total responsibility for the investment ideas at the end.)
RELATED ARTICLE:
Planning For Economic Collapse
Planning For Economic Collapse (II)
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