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CREDIT CRUNCH

Posted by Jon King on Dec 04, 2008

Tagged with: conspiracy, credit crunch, federal reserve, fractional reserve banking, great depression, hitler, new world politics, recession

Global Recession – natural cycle or market manipulation? Is Fractional Reserve Banking the cause of financial freefall?

Credit Crunch: The Moneychangers

When the goldsmiths of 13th century Britain and Europe became the first effective ‘bankers’, they probably couldn’t have predicted a modern-day credit crunch. Or could they?

It was, after all, these Medieval moneychangers who first developed the system known as ‘fractional reserve banking’, or ‘fractional reserve lending’, a system which encourages irresponsible lending and which is still in use today.

In effect, the goldsmiths realized they could safely lend up to ten times the amount they held in reserve, all with interest, generating shed loads of wonga by lending money that didn’t actually exist.

Sound familiar? Well it should. During the recent boom years mortgage companies started doling out mortgages worth up to ten times people’s annual salary, an action at least in part responsible for the current recession and the ultimate collapse of several major British and American banks and mortgage firms.

But was this action simply the result of greed? Or was there a more sinister, ulterior motive at work?

Credit Crunch: Hitler’s Rise To Power

We should perhaps remember that, during the 1920s, lenders encouraged punters to borrow small fortunes and invest those fortunes in stocks and shares worth ten times their investment value, leading inevitably to a sharp downturn in economic fortunes and ultimately to the worst credit crunch in America’s chequered history, the Great Depression—which in turn caused a catastrophic economic collapse in Europe, particularly Germany.

As a direct consequence of this, Anglo-American banks and corporations, on the pretext of helping rebuild Germany’s stricken Weimar Republic, funnelled millions into Hitler’s bankrupt coffers, secretly facilitating the madman’s rise to power and ultimately giving rise to World War II.

It is no secret today that these same Anglo-American banks and corporations — who, incidentally, continued to fund Hitler’s war machine, even during the war — made billions out of that war, and all by the masterful craft of economic ‘credit-crunch’ manipulation and fractional reserve lending.

This, at least, is my opinion, based on the evidence I’ve seen.

How about you? Do you think the current credit crunch might be the result of a similar conspiracy? If so, what motive could be driving it? Love to hear your thoughts…

Credit Crunch: The President’s Remorse

...In the meantime, here are the thoughts of President Woodrow Wilson, following the signing of the Federal Reserve Act in 1913, evidently an action he lived to regret.

‘I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world—no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority: but a Government by the opinion and duress of a small group of dominant men.’

Nuff said.

image source: Wikimedia Commons published under the terms of the Creative Commons Attribution ShareAlike 2.5 Licence

photograph: Dan Smith