Welcome to Finance and Fury, The Furious Friday Edition
Last ep – lead up to the market crash of 1929 - and how thanks to central bank leveraging once removed – the market crashed Today – want to run through the internal political wars that were created – similar landscape to today Corporatism versus fascism – Private central banks versus the merging of the Government with Markets Has similarities to the modern era – with The New Silk Road and the Green New DealStart - The Living Hell that was the Great Depression Throughout the Great depression - unemployment skyrocketed to 25%, industrial capacity collapsed by 70%, and agricultural prices collapsed far below the cost of production accelerating foreclosures and suicide. Life savings were lost as 4000 banks failed. This despair was replicated across USA, Canada, Europe and Britain - the population was pushed to its limits making western countries highly susceptible to fascism and socialism/ communism ideals England saw the rise of Sir Oswald Mosley’s British Union of Fascists in 1932 Britain, Australia and Canada had its own fascist/socialist solution with the Rhodes Scholar “Fabian Society” and League of Social Reconstruction (which later took over the Liberal Party in Canada and Labour part in Aus) calling for the “scientific management of society” Mosley Fascists were more smash and grab power while Fabians were slow and steady In America as well - Time magazine was telling people that corporate fascism was the economic solution to all of America’s economic woes – 6 times in 1932 Was a wild political time - Communist parties, Nazi party – mass protests, rioting, damaging buildings and assaulting people – while not on the same scale - climate activist demonstrations today are acting out their perceived disenfranchisement – in the 30s it was real (living through the great depression) – while one is manufactured (world ending in 12 years) But With civil unrest came the atmosphere that one of the least understood battles unfolded in 1933.
Brings us to a political movement that isn’t really ever talked about
- is another entity in the control sphere – never really gets talked about – could and have talked about commies, nazis, socialists, etc. – go check those eps out – but today want to narrow in on one type and its variants
https://financeandfury.com.au/cannibalism-nazism-and-property-rights/
Fascist/Corporatocracy versus the fascist/socialist – in this case – Central banks versus Roosevelt Corporatocracy is used to refer to an economic and political system controlled by corporations or corporate interests – an ideology which advocates the organisation of society by corporate groups In this case – the type of Corporatocracy is that of the financial system in the form of Central Banks and BIS (IMF in 1944 to try and solve this mess by more of what created it in the first place – very similar to today) But if you think about it – they both essentially want the same thing – complete control over individuals - just who is in charge is differentLet’s look at 1932 and how the Bankers’ Dictatorship Attempt went down – plans to overthrow FDR Franklin Roosevelt (FDR) won the presidency in America – He was described by many as a fascist – he was an authoritarian – but I would say he was more socialist – using the Government as his tool to implement his ‘New Deal’ Ideas were based off John Maynard Keynes – One of the engineers of the Versailles treaty talked about last Friday Keynes advocated the planning of a nation's economic life, political supervision of private industry, and manipulation of the currency – all of which required a massive increase in the size and scope of government at the time – today is a given but wasn’t back then Every Authoritarian loved this idea though – in Britain - first enthusiastic review by economist, Marxist and a founding member of the Fabian Society - G. Cole In America were government officials in Franklin D. Roosevelt's administration - The greatest strides in American socialism occurred under Franklin D. Roosevelt or arguably Presidents Woodrow Wilson, Lyndon Johnson But to pull these ideas off Roosevelt - threatened to regulate the private banks and assert national sovereignty over finance This would have been bad for the FED and the private owners of the central banks – would destroy their plans for global fascism – control of the monetary supply So the City of London Corporation needed a new global system controlled by their Central Banks Don’t let a good crisis go to waste - their objective was to use the Great Depression as an excuse to remove nation-states from any power over monetary policy – putting it in their hands and not national governments December 1932 - economic conference “to stabilize the world economy” was organized by the League of Nations under the guidance of the Bank of International Settlements (BIS) and Bank of England. Remember - The BIS was set up as “the Central Bank of Central Banks” in 1930 in order to facilitate WWI debt repayments and was a vital instrument for funding Nazi Germany- long after WWII began. Bank of England was privately owned at that stage - Independent Central Banks as enforcers of “balanced global budgets” City of London with the Bankers organised the London Economic Conference Brought together 64 nations where a resolution passedby the Conference’s Monetary Committee stated: “The conference considers it to be essential, in order to provide an international gold standard with the necessary mechanism for satisfactory working, that independent Central Banks, with requisite powers and freedom to carry out an appropriate currency and credit policy, should be created in such developed countries as have not at present an adequate central banking institution. The Bank of International Settlements should play an increasingly important part not only by improving contact, but also as an instrument for common action.” Essentially – this was to deprive nation states of their power to generate and direct credit for their own development. FDR wanting control over the economy shut down the London Conference – Back in America - an assassination attempt on Roosevelt was thwarted on February 15, 1933 Gun knocked out of the hand of an anarchist-freemason in Miami resulting in the death of Chicago’s Mayor instead – But without FDR being killed – he still was in opposition - hence London conference met an insurmountable barrier FDR recognised the necessity for a new international system, but he wanted it to be controlled by Governments and not central banks After this the London Conference crumbled - FDR stated “The United States seeks the kind of dollar which a generation hence will have the same purchasing and debt paying power as the dollar value we hope to attain in the near future.” These words seem foreign in the Fiat currency of today – but the Brits drafted a statement - “the American statement on stabilization rendered it entirely useless to continue the London conference.” Around the same time - FDR’s War on Wall Street – in his inaugural speech on March 4th: “The money-changers have fled from their high seats in the temple of our civilization. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit”. Hence FDR declared a war on Wall Street on several levels, beginning with his support of the Pecora Commission which sent thousands of bankers to prison - exposed criminal activities of the top tier of Wall Street’s power structure who manipulated the depression, buying political offices and pushing fascism Pecora called this out - stating “this small group of highly placed financiers, controlling the very springs of economic activity, holds more real power than any similar group in the United States.” Pecora’s highly publicised success empowered FDR to impose sweeping regulation in the form of 1) Glass-Steagall bank separation (one Clinton overturned), 2) bankruptcy re-organisation (remove investment banks from the control of the corporate reorganisation process by eliminating the equity receivership technique and put Government in charge) and 3) the creation of the Security Exchange Commission to oversee Wall Street. FDR disempowered the London-controlled FED by installing his own man as Chair - forced it to obey Government commands for the first time since 1913 with Wilson Had the plan to get the US out of the economic slump through the New Deal – Four million people were given immediate work, and hundreds of libraries, schools, and hospitals were built and staffed From 1933-1939, 45 000 infrastructure projects were built – similar to Climate infrastructure plans and the Chinese Belt and Road Initiative today - But he needed money - So what did he do? Created a new lending mechanism outside of Fed control called the Reconstruction Finance Corporation (RFC) which became the number one lender to infrastructure in America throughout the 1930s – Similar to today with Climate funds – with the proposal of this to lend for infrastructure to help get out of the Depression This provided an alternative option between the central banks on Gold Standard and his own Government lending (RFC) – He needed to be able to create money out of thin air to pay for his New Deal program – hard under the Gold Standard This was done as he abolished the gold standard – remember GS constricted the money supply to an exchange of gold per paper dollar – limited how much he could spend on his public works – look at the history of Government spending to GDP from 30s Also – GS could be manipulated by the Central Banks – making it a financial weapon rather than a bonus to the system – Devaluations became a beggar thy neighbour policy – drop you currency peg to gold and you are more competitive due to lower cross exchange rates – France and Britain post WW1 and leading up to the depression – France was the last mover and lost badly in economic output Also – Gold Standard had no inflation – Central Banks with limited inflation can lead to a world where the commodity prices below the costs of production – so inflation was needed for producers to become solvent Gold standard held that back – inflation of money supply was capped by gold supply – would accumulate through surplus of trade increasing money supply – FDR imposed protective tariffs to favour agro-industrial recovery on all fronts ending years of rapacious free trade – Sound familiar? FDR stated his political-economic philosophy in 1934: “the old notion of the bankers on the one side and the government on the other side, as being more or less equal and independent units, has passed away. Government by the necessity of things must be the leader, must be the judge, of the conflicting interests of all groups in the community, including bankers.” See – it is a policy war between Central Bankers and Governments over control of us all – resources determine our lives – any number of resources – power, food, water, shelter, or money to buy these things – this is all a resource One does it monetarily/financially – the other does it on the physical resources and financially Government – controls taxes, charges, regulations on land, employment, what you can and can’t do – every part of your life Like any war – both sides fight back – as such wall Street set out to destroy the New Deal Example, JP Morgan asset - Lewis Douglass (U.S. Budget Director) forced the closure of the Civil Works Administration in 1934 resulting in the firing of all 4 million workers. 1931 - NY bank loans to the real economy amounted to $38.1 billion which dropped to only $20.3 billion by 1935. Remember – they were positioned to the crash - had 29% of their funds in US bonds and securities in 1929 but rose to 58% by early 30s - cut off the issue of productive credit to the real economy – i.e. business lending over speculation Bankers not limited to financial sabotage – there was Coup Attempt in America – which was Thwarted amidst the conspiracy – Attempted a fascist military coup which was exposed by Maj. Gen. Smedley Butler in his congressional testimony of November 20, 1934 – Same person who wrote the War is a Racket book detailing those who influence nations to start wars profit from them Butler had testified that the plan was begun in the Summer of 1933 and organized by Wall Street financiers who tried to use him as a puppet dictator leading 500,000 American Legion members to storm the White House. As Butler spoke, those same financiers had just set up an anti-New Deal organization called the American Liberty League which fought to keep America out of the war in defence of an Anglo-Nazi fascist global government which they wished to partner with – America was divided in this time period – lots of immigrants in USA were German At the time of the incidents, news media dismissed the plot, with a New York Times editorial characterising it as a "gigantic hoax" Truth is probably close to the middle – wasn’t a hoax but a real plot that was in the ‘testing the waters’ phase – As historians questioned whether or not a coup was actually close to execution, but most agree that some sort of plot was contemplated and discussed – how close to execution is unknown – conspiracy definition Coup thwarted - 1937 - FDR’s Treasury Secretary persuaded him to cancel public works – see if the economy “could stand on its own two feet” – at the same time Bankers pulled credit out of the economy collapsing – Two million jobs were lost and the Dow Jones lost 39% of its value - Industrial production index dropped from 110 to 85 erasing seven years’ worth of gain Steel fell from 80% capacity back to depression levels of 19%. This was no different from kicking the crutches out from a patient in rehabilitation and it was not lost on anyone that those doing the kicking were openly supporting Fascism or Nazis in Europe - remember Prescott Bush, then representing Brown Brothers Harriman was found guilty for trading with the enemy in 1942 – as he bailed out the bankrupt Nazi party But after FDRs death – Bankers got back on top – from 1944 once the IMF was established and the BIS got back in control – 1 year later FDR dies in office and things took off
Next week – Finish with the world Today – Similarities taken from these episodes and apply to current political, financial and social environments
Hopefully, you found this interesting -
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