Comparing our economic crisis with that of 1930

Robert W. Murphy
Published: September 16, 2008

After 78 years, with visions of the Great Depression lingering in my mind, current events remind me of a time when the basic needs of many could be described in simplistic terms. “Three hots and a flop” (three meals a day, and a place to sleep) became the mantra of those who had lost their homes and jobs, through no fault of their own.

In 1930, America did not lack industrial capacity, fertile farmland and willing workers. No war ravaged the countryside, nor had famine stalked the land. America in 1930 lacked only one thing: an adequate supply of money to carry on trade and commerce.

Bankers, the only source of new money, deliberately refused loans to industries, stores and farms. Payments on existing loans were required, however, and money rapidly disappeared from circulation. By this simple ploy, America was put in a depression and the bankers took possession of farms, homes and businesses.

Today, along with a burgeoning national debt, the personal indebtedness of the people is being further exacerbated by the exclusive privilege of bankers (under the guise of fractional-reserve banking practices) to create money seemingly out of thin air, and then loaned out at compound interest!

Such an insidious scheme of money creation, which serves to make debtors out of entire nations, has been aptly described as being “the eighth wonder of the world” and rightfully deserves an honorable mention in some Luciferian hall of shame.

Robert W. Murphy
Unionville