EURO DÉJÀ VU: IT’S 1931 ALL OVER AGAIN – William W. Fawell
In 1925, England tried to re-establish a post-war dominance over the Continent with the pound sterling gold standard. Besides making the pound exchange rate over-valued, it was configured as a phony gold standard where gold was used only by governments to balance trade between nations using 400 ounce bars. It dominated Europe as it had before the war because it was supported by the dollar, at least until 1931, when the British masquerade blew up much the way the Euro is doing, slowly at first, then gaining speed until ending with a bang.
Racked by the slowing of world trade due to central bank manipulation between New York and London to maintain the pound gold standard and the debt service of WWI, economies were spiraling down and out of control, while the maintenance of debt upon debt was accelerating beyond any means by which to service it… at least without destroying the pounds phony gold standard.
This was to set the stage for 1931, which holds many parallels to Europe and the Euro today. The end result picks up in this excerpt from “New American Revolution: The Constitutional Overthrow of the United States Government”.
1931: The End of the Phony Gold Standard
It was going to be a bad year.
Eugene Meyer, who had presided over the Reconstruction Finance Corp (RFC), had recently been appointed to the Washington FRB Board. Along with Chairman Roy Young, they were trying to wrest control of American monetary policy away from Harrison (Head FED), Morgan (bank), and the NY Federal Reserve Bank.
One of the early authors of the Federal Reserve Act was H. Parker Willis, who was now its greatest detractor. He was testifying to Congress and anyone else who would listen that the inflationary practices of the FED were tying up credit that was needed elsewhere to lead the economic recovery which Harrison kept expecting to be right around the corner. Willis was putting so much pressure on Harrison that he appealed to Willis often time mentor and employer, Senator Glass of Virginia. to make him stop.
Harrison and Morgan’s problem, was that not only was America’s stock markets on the ropes, Europe was going down for the 3rd time.
On May 11th, Kredit Anstalt Bank of Austria, a Rothschield bank declared bankruptcy.
On May 29th, the Austrian central bank went bankrupt.
On June 5th, Germany declared there would be no more war reparation payments.
It was now Germany’s Reichsbank’s turn to go BK.
Throughout June the central banks of America, France, England and the BIS were working on a $100 million bail out for the Reichsbank, but as soon as the BIS had settled upon that figure, it jumped to $500 million which was out of the question.
With Morgan on the line, the New York Federal Reserve Bank had put together a tag team to badger Hoover to acknowledge and reassure the ‘fundamental soundness’ of Germany. By accident Mayer found out about it and went postal on both Harrison and Hoover as it was an implied consent to back up Germany, the act of which could never happen and would lead to an even greater disaster once reneged.
Harrison and Morgan, et al, backed off Hoover, and Hoover backed off Germany.
All they would get is a ‘standstill agreement’, which was a simple commitment by the major countries of the world to hold German paper but buy no more.
Still a Train Wreck: Europe folds
Germany left the gold standard over the weekend of July 12. England abandoned her phony pound gold standard on September 21st. Soon the world was pounding on the doors of America for gold as Japan had also abandoned the gold standard to avoid a run.
Now Washington, via Meyer and Young, put the pressure to Harrison to raise interest rates to stop the gold run. On October 16th Fed funds jumped to 2.5% and on the 23rd of October higher still to 3.5% and 4% by December. Gold pays no interest and there was enough faith in America that this was sufficient to stop the exodus of gold from the government’s reserves.
On December 11th, the New York Bank closed making the final tally for 1931standing at 2,293 failed banks.
And so it goes, as pointed out in other ZH articles, the fractal debt ratio’s across Europe, its debt, and CDS insurance on it all is in question and the only way out is over an un-subdued Germany that is reluctant to fill England’s shoe’s from 1931. Missing in 2012 are the open pockets shared by the FED to the 1931 Bank of England. Only in an indirect manner are Germany and the Euro backed in a round about way through the dollar. This leaves the Euro that much weaker than the pound sterling of 1931, and in a certainly faster world, the circumstance that ended the continental currency of the pound sterling can easily and most likely happen again, and just as quick.
The Wahhabis Wild Card: Still Fighting Over the Ottoman Empire
What Ibn Saud and the Wahhabis started over 100 years ago is back to square one.
Everyone has their eye on Greece, but Egypt is by far the wildest card in the deck as I pointed out in my previous submission (Egypt Enters the 3rd Stage of Revolution). Regardless of who wins the presidency in Egypt, the key antagonists consisting of the military and the Wahhabis led Islamic Brotherhood are going to have to fight it out.
This will fill the hub, connecting the Wahhabis war in Libya, Nigeria, Sudan, Somalia, Yemen, Afghanistan, and Syria that will now surround Israel in a circle of fire that certainly lights a fuse or two on at least 3 continents.
From 1931 to 1933, the price of gold rose from $21 to $35 (60%) in a less than a year and a half from the dissolution of the pound sterling gold standard, to Roosevelt’s immoral price escalation following his criminal confiscation of America’s gold.
As much as one would expect a move to gold during such uncertainty, the only remedy to the barbaric relic is higher interest rates, which is another impossibility for today’s central bank planning politburo. And while the world quietly returned to a defacto gold standard of sorts in the 1930’s, it was not a classical gold standard, and world trade continued its march into the sewer.
Today, the powers that be want to unite all European banking into a model of that great American parasite, the Federal Reserve Bank, with the caveat that it include the mythical powers of today’s Congress over spending. The Euro, plagued by multiple governmental bankruptcies, fits the historic definition of revolution and requires the destruction of the current system in order to create this new institution of oppression.
Therefore, the Euro must fail in order to allow for this new cancerous growth.
What the Continent really needs is to enter a classical gold standard in the north, with a floating silver standard for the outlying PIIGS, but this is only possible if America should move to a classical gold standard.
At what point does our American government declare, or be declared fiscally bankrupt (for it is all ready spiritually and morally bankrupt)? America, like most of the world, is already in the 1st Stage of Revolution, a condition most people do not recognize until this 1st Stage is nearly completed; and revolutions never go backwards.
Still, this chain can be broken, but only by ‘front running’ the revolution. This is what is advocated in “New American Revolution”. Forget the presidency, that is not where the power is at, because the real power resides in the Congress.
Welcome to OZ
Congress is like Dorothy and the ruby slippers, all the parts are there, they just have to click them together. To reinstate liberty in America, we must elect a new Congress to recover and restore its constitutionally defined powers, as set forth in Article I, sec. 8 & 9, of our U.S. Constitution (The Petition), placing their operation back into the public forum.
This action will restore liberty as the means of governance, because it provides the transparency required by the people to render their Consent of the Governed when they vote, and thereby justify the rule of government. This is the definition of liberty, because this is the constitutional mechanism that grants to the people rule over their government, instead of being ruled.
It can be done. Take a look at the Sign Our Petition page on www.nar2012.com. Here is an easy litmus test to identify those candidates worthy of our vote who are running for all 468 seats up in Congress. A listing of every candidate by state and district will be available on this and other websites by the fall. Those candidates who will commit to the Petition will be marked as having signed and committed to following through once elected. These are the ones we give our vote to, and no one else.
On November 6th, 2012, America can elect a new Congress dedicated to the retrieval and restoration of all their constitutional powers, placing them back into the Public Forum, and making liberty the centerpiece of our government once again.
This is how we organize 162,000,000 registered voters to elect a new Congress into power in November, by providing a simple and easy way to educate the voter and help them identify those candidates who will work for all of us, the great American voter.
This program will soon be augmented by a Super Pac, ELECT A NEW CONGRESS, and its website www.electanewcongress.com, that are in the process of being registered and brought on line, as the means to raise the funds to bring this service to all 162,000,000 American registered voters. If you can help, please do so.
Wish all of us luck, for no matter the cause or cure, any change for the better must come through America. It is all up to us.