by Wayne Jett, Classical Capital:
The Great Depression produced such extreme hardship that starvation took the lives of millions of people in America and millions more around the world. This essay offers a concise summary of the actions taken by and through two U. S. presidents, Herbert Hoover and Franklin D. Roosevelt, to impose the Great Depression upon Americans and other nations around the world.
At the outset, you are provided a prelude of the planning and motives for this “pivotal economic event of the 20th Century.” At the end, consider the postlude reference to testimony by a Russian elitist operative in 1938 under interrogation by Stalin’s secret police stating the significance of the 1929 Crash and the roles of FDR and his spouse in “the ‘real’ revolution.”
Prelude: The Elitists’ Assault
In 1880, the best-selling book1 on economics ever written detailed how nations worldwide are purposely misled by a powerful pecuniary force which writes laws and molds thoughts in every nation so as to lead societies down the wrong paths – “the power of a vast and dominant pecuniary interest.”2 This is done, Henry George wrote, to make people poorer and more easily dominated than they would otherwise be.
In 1901, a small book3 written by an obscure British intellectual described the global ruling elitists’ utter disdain for humanity, especially the growing “middle class” of society, and for its related political system, commonly (and erroneously) called democracy. The elitists strongly preferred the older, “more stable,” two-class system comprised only of the ruling class and the lower class of servants, slaves or serfs who obeyed their rulers’ commands without human rights.
Anticipations reported that, in order to return to the two class system, the entire fabric of Western society must be destroyed as soon as possible, leaving no trace of the middle class of people able to support themselves and families by their productive efforts. In addition, all “people of the abyss” – described as including blacks, browns, yellows, “dirty-skinned whites” and Jews – were to be “poisoned” by means to be developed within the 20th Century, so as to achieve sharply reduced levels of human population.
Instruments and institutions to be used in this deliberate return to two-class society would include a shadow government surrounding each national government, weakening it until it failed; a graduated income tax on earnings by middle class workers; a death tax to confiscate wealth of the “irresponsible” rich and the most successful middle class; tax-exempt trusts or foundations to shelter wealth of the elite; and, a global network of privately owned central banks to control all currencies used among the nations.
Hoover’s Three Big Wrongs
Herbert Hoover let it be known promptly upon his election as U. S. president in November, 1928, there would be no more budget surpluses or annual cuts in federal income tax rates as had become the custom under President Calvin Coolidge. Hoover had plans to spend federal revenues for public good. Once in office, Hoover called a special session of Congress to consider increasing tariffs on farm products. Once convened, the special session promptly proceeded to adopt tariffs on agricultural and then industrial products so high all imports would be shut out.
The Great Crash occurred on Wall Street precisely on the days in October, 1929, and at the times when the Senate voted to hike tariffs applicable to industrial products. Yet The New York Times never reported the two topics as being related until the day after the last day of the Crash. Foreign trade was not a large portion of the U. S. economy (less than 10%) at the time. But those who orchestrated the Crash used the Senate votes as signals to trigger heavy short selling of shares – essentially selling shares that didn’t exist – to cause panic among actual shareholders.
This worked like a charm (as it did in the Tech Crash of 2000-2002 and in 2008), and the fraudulent traders made millions. One of the biggest of these was Joseph P. Kennedy, father of Joe, John, Robert and Edward. Wall Street’s fraudulent trading continued throughout Hoover’s term as president, yet he did nothing to curb it. Big wrong # 1.
Hoover could have stopped passage of the Smoot-Hawley Tariff Act with a word to his supporters – and certainly could have killed the bill by veto. But Hoover did neither, remained silent, and signed the bill in June, 1930. Within 18 months, U. S. imports and exports were down nearly 70%. Foreign producers suffered even more. By the end of 1931, after closing and liquidation of many factories and businesses, U. S. unemployment was 25%. Big wrong #2.
How did Hoover prepare to run for re-election in 1932? Did he turn to cutting tax rates, as the popular Coolidge had done? No. Hoover proposed a major increase in income tax rates to cover his budget deficit. The Democratic majority in the House elected in 1930 obliged with rates higher than Hoover proposed: quadrupling the lowest tax rate and nearly trebling the highest rate. Big wrong # 3.
Hoover belatedly suggested the Senate should investigate the persistent rumors of fraud in the financial markets. The Senate obliged with public testimony of witnesses, which revealed rampant trading fraud and fore-knowledge of the Crash of 1929. Prospective voters were outraged. No surprise – Hoover lost to Franklin Roosevelt in a landslide after winning by landslide only four years earlier.