Monday, March 18, 2013

Comparing and Contrasting 1929 and 2013

Comparing and Contrasting 1929 and 2013:

In 1928, banks lent people money to buy stocks, totalling in huge volumes, leading to skyrocketing stock prices and a very rosy economic picture. In 1929, the stock bubble could not hold and began to deflate. To save the day, millionaires bought up huge amounts of stocks to boost their worth, and it worked, until they sold them for huge profits, and the market crashed. Lots of people jumped off buildings on that Black Tuesday.

In 2013, the market is again flying high, but inconsistent with the rest of the economic picture - poverty deepening (more and more people on food stamps and medicaid), unemployment rising (contrary to what the government and mainstream media say - their "unemployment easing" numbers are manipulated, by dismissing some 300,000 people as being unemployable). The stock market is boosted by the Federal Reserve (U.S. central bank) injecting huge quantities of baselessly printed paper money into it, artificially boosting stock prices.

But there is one huge difference. The money injected into the stock market in 1929 was real money, based on gold, so there is a limit to it. Now in 2013, the money injected into the stock market is paper money, of which the Federal Reserve prints $85 billion every month, or about $1 trillion every year. This, in one sense, can inflate the stock market bubble indefinitely. But in another sense, there is a limit as to how big the bubble can get before it bursts, and the bigger the bubble, the worse the inevitable market crash will get.

Anthony Marr, Founder and President
Heal Our Planet Earth (HOPE)
Global Anti-Hunting Coalition (GAHC)

Tuesday, March 12, 2013



The First World War spanned July 1914 and November 1918. As of 1914, the Weimar Republic suffered a fatal bout of hyperinflation that destroyed the German Mark. Witness this:

1914 - 1 USD (gold backed) = 4.2 Marks (paper backed)
1918 - 1 USD = 8.9 Marks
1919 - 1 USD = 47 Marks
1920 - 1 USD = 60 Marks
1921 - 1 USD = 330 Marks
1922 - 1 USD = 8,000 Marks
1923 - 1 USD = 1,000,000,000 Marks

Towards the end, prices doubled exponentially on a daily basis.

Why? Because, unlike other countries that finance the war by raising taxes, the German Kaiser and Parliament decided without opposition to fund the war entirely by borrowing. And after the war, Germany mass-printed banknotes with which to pay reparation to other countries. There were other causes, including the Treaty of Versailles and the London Ultimatum, but baseless money, massive borrowing and mass banknote printing are the three main components to the financial disaster.

Sounds familiar? In 1971, the Nixon administration kicked gold from underneath the USD. In recent years, the Federal Bank mass-printed paper money ito the tune of $billion every day. By 2012, the national debt had burgeoned to $16.3 trillion; the trend is exponential - the largest annual addition to the outstanding public debt during the Nixon years was $30.9 billion; Ford $87.2 billion; Carter $81.2 billion; Reagan $302 billion; Bush Sr. $432 billion; Clinton $347 billion; Bush Jr. $1,017 billion; Obama - $1,885 billion.

Is it now America's turn? Whether or not the situation will slip out of control is a matter for debate. Time will tell, and I doubt that it will take too long.

Anthony Marr, Founder and President
Heal Our Planet Earth (HOPE)
Global Anti-Hunting Coalition (GAHC)