"The Federal Reserve is directly responsible for the Great Depression, as is government for overstepping its boundaries. Healthy competition is vital for economic stability and growth..."
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It seems there is a direct connection between government intervention and the general population losing wealth and assets. When monetary policies are founded on faulty principles, working class people pay the ultimate price. It is only business, based on supply and demand, but it is not sound business based on good judgment.
When banks first started doing business, they were required to keep enough gold on hand to back up the paper money they printed. Paper money was easier to carry and trade for people, so they would deposit their gold in the banks and receive paper money stating its worth. Unfortunately, bankers got greedy. They began printing up more paper than the gold they took in, creating a system of inflation. Over time, paper money decreased in value, while bankers and businessmen got rich.
The government joined the little party, to stimulate the economy, and in the process increased the rate of inflation on a grand scale. Suddenly average citizens were paying taxes on government loans taken out with their own money. It was corrupt policy that led to more and more working class citizens losing everything they had, and increasing the rate of poverty in record numbers throughout the entire world.
According to amatecon.com, “At the time of the Great Depression, government intervention in the economy was higher than it had ever been and a special government agency had been set up specifically to prevent depressions and their associate problems, such as bank panics.” Economists throughout the world agree that that agency was the privately owned Federal Reserve Bank.
“Despite the varied theories espoused by many establishment economists, it was none other than the Federal Reserve that caused the Great Depression and the horrific suffering, deprivation and dislocation America and the world experienced in its wake. At least that’s the clearly stated view of current Fed Chairman, Ben Bernanke,” says David Kupelian of WorldNet Daily News. “Today the entire western financial world holds its breath every time the Fed Chairman speaks, so influential are the central bank’s decisions on markets, interest rates, and the economy in general. Yet the Fed, supposedly created to smooth out business cycles and prevent disruptive economic downswings like the Great Depression, has actually done the opposite,” Kupelian concludes.
Economics thrive on the law of supply and demand. Business owners also succeed or fail when the general population invests in them. If people can’t afford to buy their products, or put money in their banks and institutions, they must respond accordingly. Usually this means they will lower their prices to stimulate the economy. If however, they opt to ask for a government bailout or intervention, the large businesses and institutions thrive, while average citizens continue to do without. Large business in turn gets bigger, while small businesses fight to survive, and too often fail. The Federal Reserve is directly responsible for the Great Depression, as is government for overstepping its boundaries. Healthy competition is vital for economic stability and growth, while inflation and government policy prevents people from being able to do what it takes to survive.
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