The Great Depression - - - the mere mention of this historic tragedy sends shivers through the older generation that experienced it as children.

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The Great Depression - - - the mere mention of this historic tragedy sends shivers through the older generation that experienced it as children.

Even those that lived through it have never really understood the forces that caused such world wide misery. Perhaps because they were too young at that time or were too stressed trying to find work and food to take time to discover the cause.

American history books are woefully inadequate in their descriptions of the Great Depression. A few paragraphs or a simple chapter within only considers a few of what that author considers 'the cause' of the depression. Most of these causes they list were really victims of a financial collapse, and being major financial players their fall, merely launched what we termed the Depression. The Depression really started before their disintegration.

If you study history you will discover the Depression in the USA was much milder than what was experienced in Europe and around the world. The Great Depression of the 30s really began sometime in 1927-1928 - It's effects catapulted pyramidically resulting in the Crash.

The Depression of the Thirties, as will the pending Greater Depression, was and will be caused by super-inflation, brought on by stupid government policies and waste. Super inflation for this article is merely where prices are increasing at a 'far' greater rate than wages and income are able to. "Able To" : this is the key difference in normal inflation and super-inflation.

This super-inflation in the 30s was felt less in the USA than the rest of the world, but what happens in the financial realms of the world does impact every person on planet earth, whether in a large or minute impact. It is sort of a pyramid scheme in collapse.

Europe was the main geographical source of the Depression of the 30s. It had been through a World War, minor wars, reparations, rebuilding, official oppression of nations and peoples -- in effect the government treasuries were drained. One likes to think of government money as 'their' money - but government money is OUR money, placed there by taxes 'allegedly' for our benefit and security.

The Depression in the USA was entirely due to government decisions and policies regarding banking and money. Congress ignored its duties and responsibilities under the Constitution in favor of party politics and the then current party bosses and business/corporate lobbies.

In the middle of a drought in America's bread-basket, which was causing a higher than normal inflation, government banking policies, reflected the "LA$$IZE FAIRE" i.e. "que sera sera" attitude of government towards bankers and banking laws.

Congress, playing party politics, refused to address the problems that congress itself created.

Few people realize there are actually TWO monetary systems in the USA and in most nations around the world, if not all. There is the one we're most familiar with, and that is the official treasury of the government, the entity that orders and is responsible for the printed money you use. The other is the 'credit' money that is created out of thin air by banks, mortgage companies, savings and loans, stock market, hedge funds, money market funds, etc. and etc.

These 'credit' dollars were NOT authorized by the treasury or by congress, but were 'allowed' by congress through lack of oversight and legislation. The credit money is created by simply moving numbers on a balance sheet, and what I call a semantic fraud against all of us.

When you make a deposit to a bank - it is a liability to the bank. The bank has your money and they owe it to you 'on demand.' Yet, YOUR deposit, YOUR money is listed as an A$$ET instead of a liability on the bank's accounting. BY LAW, the bank is not required to keep all YOUR money available to you, only about 10% of your money is 'on hand' at the bank, even though they record ALL your money as their asset.

I bring this up as a simple example of only ONE of the reasons and one of the duties that the government is responsible for, which when ignored causes a full economic depression instead of a simple downturn in business.

In the 30s, in the middle of a drought, the bankers foreclosed on the farmers. Government should have stepped in and stopped this atrocity. Blaming the bankers was the simple thing to do- but the government was responsible for it. Banks do NOT exist in the USA except by government permission and they have to abide by the laws that congress applies to them. Congress should have stepped up and stopped the foreclosures early on, recognizing the cause of the foreclosures was 'outside' the normal realm of market pressures - mainly a drought.

It was a GOP administration and congress that allowed the Depression to happen in the US in the 30s. It was their fallacy of ideology 'that business knows best.' The bankers ran amok, with government permission, and finally resulted in the Wall Street collapse.

We are witnessing the exact same historical parallels right now that the world suffered through in the late 1920s and 30s. Some of the circumstances are different, but the players are the same. This time the Crash will be much worse for the USA and the world. This time even the treasury approved dollars are IOUs and not asset based money.

The Roaring Twenties is evidence that liberal attitudes created a great economy in the USA. When the oppressive conservative attitude erupted with the Hoover administration, with their time proven failed economics, the roots of the depression sprouted.

I make a decent living from my business. I make a little more this year than last year. But even with the increase of earnings, I cannot buy what I want or need. Super-inflation is already affecting ALL of US!

For example : I need and use Primatene Mist Inhaler, to help clear my congestion. I am not hooked on it and use it probably once every other day. Twice now I have had to go to three or four stores, drug stores (pharmacies) that SHOULD have this product in stock as a regularly stocked staple item. I would drive 25 miles to a larger city to try and purchase this product, when the two stores nearby would not have it in stock. I went to three pharmacies in the large city before I could find even one bottle AND there were only two bottles at this store. This product was about $9.00 a bottle a year ago.. and this bottle was $17.00!

My income has not doubled - but the prices have. This is but one item. As I looked through the stores I began to notice in this nationwide chain pharmacy that the shelves were not stocked, and that the 'drug' staple products were in very poor supply. Nearly every other item along the shelves were sold out, and only 1 or 2 in stock of what was available.

I buy an antiperspirant that does not contain a particular ingredient. I've used the same one for many years, and it's a nationally known brand. A year ago I bought them at the local dollar stores for about $2.00 a can. Now these dollar stores are not stocking this brand, so I was going pick some at that big city drug stores. The first two I tried were sold out, and I finally located two cans at one pharmacy.. at $5.00 a can! This my friends is the super-inflation that you should be scared to death of.

These examples I am relating to you all happened on the SAME day!

A friend of mine needed to replace her CD player that had gotten old and not worth repairing. We went to one NATIONAL chain store, selected one on display and then were told they were out of stock. As we roamed through the store looking at the CD players, the shelves were nearly empty, as they were placing the displays about two feet apart from each other. Having failed there, we went down the street to another popular national chain store, to discover the same wide shelf spacing. We selected another CD player at this store, only to be told they were OUT OF STOCK! So the few on display were merely place holders for products they didn't even have to sell!

This is NO way to make money….. ask any business person.

At these same nationally known electronic stores I attempted to purchase two NIC cards for computers at my business that have quit working. Again the first store had plenty of 56K telephone modem cards that few people use in this area, but had not a single NIC card for network and broadband. A year ago I could have purchased a hundred of them at one store for about $10.00 each. The second store had only TWO in stock, which I purchased but they were $25.00 each.

Again more than double the price, and barely any in stock.. Signs and evidence of super-inflation.

I also wanted to purchase a new router for our network. We have an 8 port router and our network has grown and I was going to replace it with a 16 port router. Not only did neither of these electronic/computer stores have a 16 port router, they didn't even have an 8 port router in stock. One of the stores had ONE four port router left.

Both stores offered to order the CD players, NIC card, and routers for me. But WHY would or should I have to order them from local stores and have to drive that 50 miles round trip twice just to get the products? Not me… not at $3.00 a gallon! It would have been cheaper to locate a business out of state with what I needed in stock and have it shipped to me.

Stores without products, with empty shelves in two distinctly separate businesses, and what's left at over twice the price from a year ago!

Remember this is all within a 24 hour time period.

Where would you think you should go to purchase automatic transmission fluid? An auto parts store? Not any more! My father had a transmission put into an older car. This had to be done 'in his yard' since it would not make it to town on its own. The mechanic installed the transmission and I went down to the auto parts store to get the transmission fluid. I needed 10 quarts to fill up the empty transmission. Have you ever heard of not being able to find transmission fluid? The auto parts store only had three quarts! I went to the dollar store and they had none. So I went to the next auto parts store and they only had 12 quarts in stock! Now they have none. I bought the last transmission fluid they had -- at $4.00 a quart, and a year ago it was $1.00.

This is super-inflation at now the third distinctly different business!

You can add your personal adventures into the market place to these for they include produce, milk, gasoline, shipping, paper, school supplies, etc. Most everything is doubling or more in price.

Why is this do dangerous? Can this cause the next Depression? YES!

Supply and demand.. There is always demand for transmission fluid, in every car on the road nearly. Supply has been restricted or restrained -- and the prices have quadrupled.

Why has supply been restricted? Bankers! Many large businesses use credit and credit dollars based on 'future' sales to restock their supplies. Credit has dried up. The merchant has the same amount of dollars sitting on the shelves, but the amount of merchandise they can purchase is one half or less than a year ago. While putting on a brave face: the banks and the merchants depending on banks are in trouble.

Yea, let's blame those banks, but remember they do what they are allowed to do by government! They are foreclosing on homes during a time where super-inflation exists. Government should have stepped in early and put a stop to the foreclosures and end the practice that caused the ill-advised loans to begin with. But you've all heard the incompetent 'que sera sera' attitude of the diddler in chief -- NO BAILOUTS!

The Treasury is empty. The money has been wasted on two insane wars that never should have been allowed. The treasury is wasted with non-humanitarian foreign aid when our own infrastructure and manufacturing production systems are falling apart. Jobs are being replaced by overseas competition.

But once again as in the depression we have party politicians that want to play politics rather than face 'head on' and stop it from happening. They want to stick to their insane ideologies to the very end… and that end is your misery and mine in what will be the Greatest Depression ever.

Everything that will or may happen is going to be the fault of this particular administration, this congress, this government, which have compounded bad government decisions of the past and who choose to party instead of facing facts.

NAFTA which is one of the most unfair and insane trade policies ever devised, got its impetus starting under Reagonomics, which is an uneducated and infantile view of economics. It was catapulted into existence by George Bush Sr. Clinton ran for election, opposing NAFTA for all the right reasons, but sold his birthright for a bowl of porridge and signed it into law. The current incompetent in charge has made it the ONLY trade policy he has.

NAFTA added to other congressional laws work against each other to the detriment of Americans. The recent minimum wage increase gives an unfair advantage to foreign competition, since they do not have to pay that minimum wage. Under NAFTA, 'LA$$IZE FAIRE' - 'que sera sera' the American company, employer, manufacturer cannot compete against the foreign company because it has to obey the laws of the US!

The deck is stacked against US businesses and the US worker in favor of the foreign company. Chavez of Venezuela recognized that he could not pull his nation out of it's eternal history of poverty if his people had to compete with other nations under NAFTA. NAFTA is a national destroyer of jobs and security.

Chavez is hell bent - the right way - of rebuilding a production and manufacturing base that can supply his nation with his nation's products and his nation's workers. -- only seeking outside imports for those industries or resources Venezuela cannot supply.. He is only intent on exporting those products that his nation is wealthy in, and has excess that the people of Venezuela cannot consume all the production of.

He is taking the FD Roosevelt road of rebuilding a nation's economy. Chavez or his advisors have studied history and have chosen those paths that have proven successful in the past, regardless of politics.

Bush has taken the other path that has proven to be a failed economic path time and time again. Conservative economics has never worked and never will. Conservative government is great, but conservative economics is disaster. What Bush has called conservative government is anything BUT conservative government! Remember the GOP attitude is that DEFICITS DON'T MATTER!

Deficits are arbitrary for government when the deficits are all internal, within the USA. They are not arbitrary and they DO MATTER, and matter a lot, when those deficits are to foreign nations and outside powers.

China can crash the dollar at anytime right now because they own so much of the US deficit. They own the IOUs that BUSH has sold to them. Bush will cause the US to OWE trillions in deficits to foreign powers. The US will probably owe a Trillion or more just to Iraq. Deficits DO MATTER!

Owing yourself is one thing and that is arbitrary -- Owing someone else is an entirely different matter. Most of us working people, that have never had a silver spoon in our rear extremities understand this.

If Bush were borrowing a billion dollars to build bridges in the US, then we are owing ourselves. On a balance sheet its tit for tat. We would have those bridges and we owe ourselves for it.

But the stupidity of the BUSH GOP is borrowing the money to destroy another nation or two across the world, where there is nothing left to show for the money spent. The US is borrowing money to destroy-- not build. In other words, you will have a deficit with nothing to show for the expenditure. It's like borrowing money to wreck a car instead of borrowing money to purchase one.

Now we have the dollar falling in value in comparison to other nations money. This is what happened in Europe, especially to the German mark in the 1920s. The dollar is falling overseas due to the treasury being empty, because Bush and GOP have spent more US dollars OUTSIDE of the USA than any other administration in history. The treasury is empty because Bush and his GOP conspirators have lowered taxes on that segment of our nation that CAN afford to pay them, while refusing to lower taxes on the working class. The dollar is crashing due to Congress allowing the insane unregulated creation of credit dollars.

Remember there is NO paper money backing those credit dollars, no government guarantee on credit dollars.. they can disappear on a whim and a whisp of public suspicion - here or overseas.

Historic parallels? Do you see them?

The nation is in a heat wave, which few have called it what it is -- a drought. Mortgages being foreclosed on by banks and mortgage companies. Congress run by politics rather than wisdom. Credit is drying up. Wall Street is having tremors, hoping there will not be a crash.

The dangers to Wall Street now are the same as they were in the 1920s -- which is gambling by investors. They call it speculation, but it is nothing more than gambling. They are creating credit - thin air dollars - very similar to banks and loan companies.

This dangerous cycle is a product of 'good times' in economics. The Roaring Twenties were the good times. People were working, the manufacturers were busy, the nation was self sufficient, and people were wanting to invest money to get a return on investment. They would gamble on businesses that were long shots, hoping to hit the big time.

The Clinton years were really like the 1920s economically, due to liberal economics. I have no praise for Clinton, because many of his acts have added to the problem which Bush is escalating and compounding.

Wall Streets' credit dollars are created by what they mildly call over-valued stock. This is a fraud, not just an overvalued stock. This is selling stock in a company for value that never existed. The supposed value is created from thin air, the stock prices are based on that thin air. It's no different than being told a car you are looking at is worth $50,000 and you pay $50,000 for it, later to find out it was only worth $3,000. At the same time someone was there to loan you that $50,000 for the car who KNEW it was only worth $3,000. They have created $47,000 dollars in value that did not exist in reality.

They call this scam 'intangible assets.' Intangible assets are thin air. Google is a fine example of having a lot of these intangible assets for which people are willing to gamble on. In actual hard assets that you can touch, feel, hold, etc.. they have very little in comparison to their outstanding stock. Google is our example because most people can see that Google's intangible assets are cyberspace, and not factories, machinery, etc. It's thin air. Those intangibles might be worth something, but are they worth the outstanding stock, and the risk is that intangible assets can disappear overnight.

When people begin to discover they have been sold a $3,000 car for $50,000 they try to unload that car for as much as they can get, or default and let it go back to the bank. If 3 million people have that same $3,000 car they paid $50,000 for, and they all realize they have been rooked, they all try to sell them off. Hence, a RUN! This case is a run on Wall Street.

The run on Wall Street is what was called a Crash in 1929. When people realize their money is NOT in their bank, they all rush to get their money out… thus a run on the bank. This is not the people's fault for acting practically and sensibly. This is the fault of YOUR GOVERNMENT for allowing Wall Street and the banks to operate on thin air credit dollars and not restricting the oppressive policies against their own customers.

This time it will be the fault of the Bush Administration, the Failed ideologies of the GOP, and this Current Congress for doing nothing to head this coming depression off.

Taxation in the states are a far greater burden than is fair or tolerable and governments foreclosing for tax purposes is an insanity that must be ended. If too slow to cut these taxes, in light of everything going on, the state tax systems alone could trigger this next depression.

Businesses are not ABLE TO increase wages fast enough or large enough to keep up with price increases. Super-inflation is the result and is the fault of stupid, ignorant government policies. The dollar crash overseas has caused products to become much more expensive making businesses able to stock less, and as spendable income decreases the demand goes down for products. The government deficit owed to foreign powers, along with spending money where there can be no return in two wars of insanity, the lack of infrastructure investment within the USA (and that includes manufacturing), lame, failed and unfair trade policies, are all causes of this coming depression. It is not one single thing that will put the USA into a depression but many bad policies and decisions all culminating at the same time. The 'domino' effect and the 'house of cards' will fall on top of us.

I think we could survive a run on the banks. But I don’t think we could survive a run on the banks, followed by a run on Wall Street, with a demand on Treasury Notes by foreign powers, higher government deficits, mortgage foreclosures, super-inflation, droughts, coupled with bad trade policies and no manufacturing infrastructure. This is what the Incompetent Bush is commandeering. This is what happened in 1927-1929 -- to culminate in that depression.

Bush is authoring the Greater Depression for the 21st century if he and his GOP and Democrat co-conspirators don't do a fast about-face on economics and trade.--- and do it quickly.

L. Savage
http://www.HiddenMysteries.com
http://www.HiddenMysteries.org
http://www.TexasNationalist.com  

Authors Website: www.hiddenmysteries.com

Authors Bio:
Seeking to turn Texas back to blue through independence