Reprise: Bernanke Admits Fed Caused Great Depression

Transcript:

… Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton [Friedman] and Anna [Schwartz]: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.

http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/

http://thoughtcrimeradio.net/2015/02/milton-friedman-on-the-origins-of-the-great-ripoff/

Just a big misunderstanding that happened to vastly enrich the fed’s shareholders.  And now they’ve done it again but via a different approach: GHW Bush arranged for housing lenders to be immune from the consequences of bad mortage loans by forcing fannie mae and freddy mac to buy sub-prime mortages from the banks (Federal Housing Enterprises Financial Safety and Soundness Act of 1992).  A sub-prime mortgage doesn’t magically become prime because the president wants poor people to have homes.  The laws of arithmetic get in the way.    Meanwhile Moody’s and S&P issued entirely fraudulent credit ratings on mortage derivatives, which lured all kinds of traditionally conservative investment funds such as pensions to buy the crap.  GWBush actively prevented the states from investigating predatory lending practices ( http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html ), delaying the day of reckoning to maximum effect, but the pin that pricked the bubble was the BIS new “mark to market” accounting rule ( see http://theeconomiccollapseblog.com/archives/tag/the-bank-for-international-settlements and http://www.globalresearch.ca/the-tower-of-basel-secretive-plans-for-the-issuing-of-a-global-currency/13239 )

But the biggest factor of all was greenspan’s historically unprecedented bubble which lured poor people into the trap of buying homes they couldn’t afford and existing homeowners to take out second and third mortgages, all while housing prices skyrocketed.  When the bubble burst, the bastards actually blamed evicted homeowners when of course it was the lenders’ job to determine borrowers’ creditworthiness and they no doubt would have if the two bush’s hadn’t relieved them of financial liability and shielded them from prosecution.  Given that college educated adults were in charge, the implication is that the regulatory stage was specifically designed for collapse.  A financial false flag.

Greenspan is supposed to be an economist.  His megabubble was not sane economic policy for the country, but it was a great strategy for the fed’s owners, who positioned their investments to take advantage of the upswing they knew was coming, and are now flush with QE cash to gobble up assets for pennies on the dollar when desperate people sell everything to survive, as they did in the great ripoff of the ’30s.

So all in all it was quite a well-coordinated attack utilizing both democrat and republican assets in the white house and congress, and the bleeding has only just begun. This is the kind of power you can buy when you can create money out of nothing.  There’s hardly a more convincing case for the immediate nationalization of all central banks.  See www.monetary.org for an elegant and effective solution to our predicament.

Did it really take a nobel-prize winning economist to figure out that the fed’s policies matter?

Also see: http://thoughtcrimeradio.net/2015/02/milton-friedman-on-the-origins-of-the-great-ripoff/

http://thoughtcrimeradio.net/2013/11/success-government-brought-down-the-economy/

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