July 14, 201
During a U.S. House Financial Services Committee meeting held in response to rumors the Federal Reserve plans a third round of printing fiat money out of thin air – otherwise known as quantitative easing – Ben Bernanke told congressman Ron Paul the Fed was created to prevent the rise of financial panics.
In fact, the Federal Reserve micromanages financial panics that lead to economic depressions. Bernanke admitted this. On November 8, 2002, he agreed with Milton Friedman, who argued that monetary forces – that is to say manipulation of the money supply – led to the so-called Great Depression. “Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again,” Bernake said.
Historians like to say the Fed made mistakes in the lead up to and during the Great Depression. In other words, according to the official version of history, the Fed was staffed by clueless bozos who slept through their Harvard educations.
- A d v e r t i s e m e n t
The Fed did three things to make sure the Great Depression occurred. First, it inflated the money supply around 60% during the 1920s. This touched off an artificial stock market boom that led directly to a crash. Second, it raised interest rates despite the fact the economy was cooling off on its own in 1929. Third, the Fed raised interest rates again in 1931 as the economy contracted.
Instead of buying assets, the Fed forced banks to buy treasuries and this removed even more money from the economy and led directly to people hoarding money and a cessation of economic activity.
In 1936, the Fed made sure the depression would continue by ordering banks to double their reserve requirements. Immobilizing reserves at that time guaranteed the economy would sink back into a deep depression.
For the whole story on how the Fed destroyed the economy, read The Great Depression by Hans F. Sennholz.
Bernanke takes us for a pack of idiots. The Federal Reserve’s primary focus at this point is to destroy the U.S. economy and eventually merge the remains into a global command economy controlled by the bankster cartel. The Constitution and American sovereignty will be decimated in the process.
The following from The Money Masters, available at the Infowars store.