[JIM DUNDON 06.23.06 0100EDST]
FOR WHAT IT’S WORTH
RUNAWAY SPECULATION AND SUBSEQUENT SELL OFFS WAS IDENTICALLY THE COLLAPSE OF THE STOCK MARKET, BUT CONSIDER THE FOLLOWING.
"FROM AUGUST 1929 TO MARCH 1933 THE US MONEY STOCK FELL BY ONE THIRD.
IN AUGUST 1929 THE MONEY STOCK WAS 10.6 TIMES THE GOLD RESERVES. BY AUGUST 1931 THE MONEY STOCK WAS 8.3 TIMES THE GOLD RESERVES AND THE GOLD RESERVES WERE FALLING.
THE LOSSES OF DEPOSITORS OF THE 9000 BANKS THAT SUSPENDED OPERATIONS DURING THE FOUR YEARS FROM 1930 THROUGH 1933 WERE 2.5 BILLION. THE BANK FAILURES WERE THE MECHANISM BY THROUGH WHICH MOST OF THE DECLINE IN THE MONEY STOCK WAS PRODUCED, AND THIS BROUGHT ON THE GREAT DEPRESSION.
THE FEDERAL RESERVE BANK DID NOTHING TO HELP BECAUSE IT WASN’T SET UP TO SERVE THE NATION. IT WAS SET UP TO PROMOTE THE SHORT TERM PROFITS OF THE LARGEST BANKERS."
FROM “THE LOST SCIENCE OF MONEY” BY STEPHEN ZARLENGA
BEST
JIM D