The New Depression

by Ed Cleveland

This month I'd like to take some time to try and help all of you understand what has happened with our economic system in the United States of America. For many years, in fact, from the founding of our country until the middle of the 20th century, the United States had the strongest economic system in the world. However, piece by piece our system has been chipped away until all that remains is a smoldering pile of ashes.

As you are aware, in early October of 2008 both the Senate and Congress passed a bill that gave over 700 billion dollars in what essentially amounts to “welfare” to many large financial institutions in this country. It has been called a “bail out” or a “rescue” package, but that merely obfuscates the real purpose of the bill. In effect, our government has followed the lead of other third-world nations – and I indeed call us a third-world nation as no civilized country would sell out their own citizens – by federalizing many of our largest banking institutions.

But you may not be aware of all the reasoning that went into the construction of this devastating bill. Nor may you fully understand the ramifications that this bill has for the millions of honest, hard-working people in this country. Therefore I'm going to walk though all the events that have led up to the current situation, and perhaps even offer you some perspective into what we, as White men and women, can do to help insure that our families are able to weather the upcoming economic earthquake. So let's begin by a history lesson in the economic system of the United States.

Prior to President Roosevelt abandoning the gold standard in 1933, all currency in the United States was backed by precious metals. From the early 1800's through the 1900’s the United States was on what was called a “bi-metallic” system, whereby our currency was backed by either silver or gold. In 1900, in order to simplify the valuation of the dollar, the United States moved to a completely gold-based economic system. Under this system a dollar was worth roughly one and two-thirds grams of 90% fine gold. In essence, this meant that one dollar would buy exactly 1.5 grams of pure – or 99.9% fine – gold on the open market. Conversely, if you had one ounce, or roughly 28 and one-half grams, of pure gold, then you would be able to exchange that for 19 dollars.

This meant that every dollar in circulation was “backed” by something which had real value. If more gold came into possession of a group or people, or into the possession of the government – either through foreign exchange or mining – then there was more currency available for the nation as a whole. If an enemy army stole a country's gold reserves, then they effectively shut down that country economically, as no other nation would be willing to trade with a country that was, in effect, bankrupt.

However, as I stated earlier, Roosevelt decided to suspend the gold standard in 1933 during the period known as the “great depression”. Some have said that he was simply following the lead of other nations, which had already suspended the gold standard. Others believed that it was the only way that our country would have been able to recover from the devastation brought on us through the great depression. Yet, no matter how you “spin” it, the abandoning of the gold standard would set into motion a series of events that would eventually lead us to the economic crisis that we face today.

The great depression started on “black Tuesday” in October of 1929. During the years leading up to the crash there was incredible prosperity. In fact, from the mid-1920's until 1929 the market had become the envy of the entire world. However, any system that is built on an unstable foundation is destined to crumble. And when the stock market came tumbling down it took with it nearly 90% of the money that was invested into it. From the Dow Jones average high of more than 350 points, it sank to a low of just over 41 points! And it wasn't until the mid 1950's that it managed to regain the level that it had before the crash.

What this meant to the average investor was that the 10 thousand dollars that they had in the stock market in 1928 was now worth roughly 1,300 dollars. And it wouldn't be worth 10,000 dollars again until almost 35 years later. Of course, that really didn't matter to most of those investors, as the losses sent countless people to the poor houses as that money was perhaps all that they had to their name. People lost their houses, their jobs, their cars, and in many cases, their lives!

How could this have happened? After all, if our monetary system was based upon a gold standard then wouldn't it have retained it's value through the great depression?

The answer to that isn't as simple as it seems. While the core of our economic system was based on gold, a new standard was being slowly introduced. This new system was one based upon a term called “speculation”. In essence, people were “betting” on certain businesses or industries to succeed. They would offer money to these businesses in exchange for piece of paper called “stock certificates”. Instead of getting a certificate for gold, which had an intrinsic value, the stock certificates were worth only what the value of the business could return to these speculators. So people would invest in these certificates, gambling that the business would use that money to produce more goods or services that would, in time, increase the value of the business. Then, when the value of that business would increase, the certificate would then be worth more money and could be exchanged for dollars on the market, or held onto until a future date.

But the actual dollars used for the investment were still backed by the same gold standard as before. In that way there was still a finite amount of currency available in the United States. Yet, if that were the case, then how could these businesses continue to increase in value, and therefore return more money to the investors than what was initially invested into the business?

Remember, I warned you that this wasn't as simple as it seems!

In order to provide a higher return on a dollar than was available on a gold standard, a new idea had been brought into play. The amount of money charged for goods and services was increased as demand for those goods or services increased. Consequently, if the demand for those goods and services declined then the cost of those goods and services declined as well. Therefore it was in the best interest of these businesses to provide those things that the consumers were demanding most. By doing so they were able to sell more goods and increase the amount of money available to grow their business. Then, in turn, the amount of money that they had caused the value of their business to increase, which in turn caused the value of the stock certificates to increase. But where did that money come from?

In most cases the money came, indirectly, through loans. Consumers would borrow money from banks to purchase new homes or cars. Those items would be purchased from businesses that provided the goods. Therefore, in essence, the money that funded the increase in stock prices came from the interest on the loans. But that still doesn't explain where the actual gold came from that backed those loans to the people, does it?

And that is the whole reason that the stock market crash of 1929 is the pivotal point in our economic system. Prior to the 1920's people rarely took out a loan to purchase anything. Many of us remember our fathers, grandfathers, or great-grandfathers – depending on our age – talk about how they never borrowed any money from a bank. They understood that there was – or at least there should have been – a finite amount of gold available, and therefore a finite amount of money available. Yet during those boom years of the 1920's people borrowed money at an alarming rate. And many people borrowed money in order to invest it into the stock market. That is the epitome of stupidity! Borrowing money to gamble that the value of a stock certificate is going to increase faster than the interest rate of the loan was tantamount to running uphill on a treadmill. No matter what would happen, there was no way that the money invested could ever keep pace with the rate of interest on the loan.

So how could people have been duped so easily into thinking that they could live an extravagant lifestyle and not worry about “paying the piper”? Simple. Two family names come to mind: The Rothschild's and the Rockefeller's.

The Rothschild family were strong Zionist Jews. They ran the banking industries in most of the European countries, including Germany, for many years. In fact, to a very large extent, it was because of the stranglehold that the Rothschild family had on Germany that enabled Adolf Hitler to rise to power. He promised to liberate Germany from the grip that the Rothschild family had on their country, and in the early 1930's he succeeded. However, that is a history lesson for another time!

Unfortunately for them, the Rothschild's had very little influence in the Uniter States. For that, they would need a “inside man” to help them to infiltrate our country. That man was John D. Rockefeller, a capitalist making billions from his ownership of Standard Oil and at one time the richest man in the world .

In the early 1920's the Rothschild's worked with a group of people to form the Council on Foreign Relations, or CFR. Through that organization they hooked up with Rockefeller, who had the financial backing and influence in the United States that enabled the Rothschild's to get their foot in the door. Through Rockefeller's financial empire the Rothschild's were able to gain control of most of the United States media, including magazines like Life, Time and Newsweek. With the media at their disposal they could easily control the minds, and therefore the pocketbooks, of the citizens of the United States.

By convincing the people that they could “have it all”, the Rockefeller's and Rothschild's took the United States on a spending spree that sank them into debt. And once that the majority of citizens were in over their heads the Zionist trap could be sprung. By convincing people that there were major economic troubles on the horizon a mass panic was sure to ensue. Those that had the financial ability to get out of the stock market did so at a rapid pace. Those who could not, because they relied on the stability of the stock market to remain strong, would be swept up in the tide and washed ashore.

As you already know, the ones that had the most financial stability were the Jews that had been anticipating this “crisis” for many years. And, since they were the ones that had the money, it was simply a matter of just waiting for the right moment to come. Of course, they were more than willing to “help out” those in need after the crisis by lending them money to rebuild – with appropriate interest being charged, of course!

And this brings us to the “standard” which had really backed the currency in the United States at the time of the stock market crash. You see, by the time that we had realized that our financial system was in jeopardy the damage was already done. For the gold standard, which gave us our solid foundation, had been stolen away many years before the crash by greedy, conniving Jews who instituted a new “standard” upon the people – credit!

Thus, in 1933, Roosevelt formally abandoned the gold standard in the United States. This suspension was supposedly a “temporary” situation, in order to stimulate an economic recovery. However, the United States never truly returned to the gold standard. That presidential order changed out monetary system forever, as we went from a monetary system backed by a tangible commodity, to a standard based solely upon someone's word that they would repay a debt. The official term for this system is “fiat currency”.

“Fiat” is a Latin word that means, “It shall be done”. In the context of fiat currency, or fiat money, it simply means that the money is payable upon demand. In other words, when you give someone $20 for cutting your hair, you are in essence saying, “I authorize you to credit my account this $20 for the services that you have provided to me.” There is no actual monetary transaction that takes place here, it is merely the extension of credit from one person to another. Or, another way to look at it is that the service provider, in this case the barber, is cutting your hair with the expectation that the piece of paper that you give him, or her, can be redeemed at a later time for other services or goods.

Do you see the problem here? There is nothing tangible at all transferred in this exchange! In fact, there is the possibility that the barber will never see anything of value come from the services that were provided. If the monetary system suddenly collapsed after you paid the $20 of credit, then that piece of paper would be worthless. Therefore, you would have never truly paid the barber anything. Imagine what happens when inflation starts spiraling out of control. That $20 you gave the barber, after a week of hyper-inflation, could likely be worth $10. So the barber literally lost half of the value of that piece of paper, just because the paper has no intrinsic value.

Just look at what happened over the last few weeks. As I prepare this transcript the stock market is in turmoil. The Dow Jones Industrial Average has plunged 40% from its high, which was set a year ago. Back in 2007 the Dow was over 14,000 points and at one point it closed just over 8,500 points. Putting this into simple terms, that $20 bill would be worth $12 if it were a stock certificate! And the market continues to tumble with no end in sight.

We can see another variable in the current economic mess by looking at the sub-prime lending practices in the home mortgage industry. Under this scenario, a person may be allowed to purchase a home they actually can not afford by getting a loan and initially paying an interest rate that is below the actual market prime rate, or at a sub-prime rate. Under this variable rate system, the rate can adjust up eventually rising above the actual prime interest rate. So these home owners who could not afford the house they wanted to purchase in the first place were allowed the “credit” to purchase the house with a sub-prime interest rate loan, which eventually rises to a point the home owner can not afford to pay it. But that is not something we have time to get into today. However, it is related to the things we have talked about.

But there are a few people who are elated over the drop in the market. I admit that I'm rather glad to see a lot of people in a panic, as it can do nothing but strengthen our position as White men and women in this country. A wise man once said, a little trauma and privation would do our people a lot of good. We are witnessing some privation now. The trauma is sure to follow. But others are celebrating for a much more self-centered reason. They are the “short sellers” in the market.

What is short-selling? These are people who gamble that a stock price will fall. So they “borrow” stock with the promise to return it to the lender. After they borrow it they immediately sell it off. Then, when the price of the stock falls to a point where the “investor” can make a decent profit he buys the stock back and returns it to the lender.

Here's a simple example of this: ABC Corp. stock is selling for $100 per share. Saul Rosenberg borrows 100 shares of the stock from XYZ Brokerage and sells them for $10,000, the market price at the time. So Rosy now has $10,000 in his pocket. But, at some point, he still needs to return that stock to the broker from whom he borrowed it. So Rosy waits for a month. Then, ABC Corp. stock takes a huge tumble and the stock is now selling for only $50 per share. So Rosy buys 100 shares of the stock at the new market price and returns them to the broker that he borrowed them from. Since Rosy paid only $50 per share for the stock at it’s original price he made a profit of $5,000 without ever actually owning any of the stock! He'll have to pay XYZ Brokerage a small fee for the privilege of borrowing the stock, but that will be a pittance compared to the profit that he made.

That was one of the reasons that the stock market crash of 1929 was so devastating. There were literally thousands of these short-sellers making money from other peoples losses. The majority of “investors” were willing to short-sell in order to make a few bucks, so they had no reason for hoping that the market would rebound. Would you like to take a guess on what race these people were? If you guess “Jews” then go to the head of the class!

The current financial woes that we are facing in this country are strikingly similar to what transpired in 1929. Things are moving a little slower now than they did in 1929 because of some safeguards that were built into the market. Still, over the next year we will likely see a much poorer economy as the results from all the greedy Jews taking profits wherever they can takes its toll.

So, how is it that the majority of people in this country remain so ignorant of our economic system? Why do they not realize that the monetary system is nothing more that a fairy tale... and a poorly written one at that? How do companies like Fanny Mae and Freddy Mac operate the way they do?

Simply put, there has been a concerted effort over the past 50 years to set the United States up for this disaster. In the 1950's President Truman tried to expand the failed efforts of Roosevelt's “New Deal” programs. Truman instituted more government programs to help “low-income” people buy homes. He put into place “rent controls” which prevented landlords from increasing their rent to match fair-market values. And he expanded the Social Security system, increasing the burden on the taxpayer by raising the amount of their contribution to the system.

Of course that lead to more inflation and an economic downturn. And, as everyone knows, the best way to boost the economy is to go to war! So good ole' Harry went to Korea! And, as expected, that helped out a little bit. Then, a few years after that war ended, we needed another boost, so it was off to Vietnam!

The one thing that these politicians seem to forget, however, is that someone has to pay for these wars. Someone needs to foot the bill for all the guns, ammo, and fuel that is used to inject money into the economy during wartime, and that burden falls back on those that pay taxes. So any economic gains that our country sees as a result of the wars quickly erodes away when it comes time to pay for the privilege to fight a war for someone that doesn't really give a damn about us in the first place!

Remember what I said earlier about how the stock market works? There are two types of investors in this world: “Normal” investors and short-sellers. And, since our economic system isn't based on any tangible system, like a gold standard, there is no limit to how they can manipulate the market to suit their purposes.

Of course, we could play this same game. There's nothing at all that should stop us from having our own brokerage firm, and manipulating the various stocks to build wealth. But I know what it is that stops me from doing that. I understand exactly what it is that is going on. I realize that all that I'm doing is harming other people by using these underhanded methods of buying and selling stocks. And, to be brutally honest, if it were just the Jews that I was hurting then I wouldn't hesitate to jump into this ocean with both feet! But the real people that get hurt by this deception are people just like you and me, hard working honest individuals that have to pay more for their next car or house, or have to take out a loan just to fill their tank with gas! If anything, playing the short-selling game only helps the Jews, and that's why I won't be a partner in their crimes.

No, what we need is to go back to a system that worked for our people for thousands of years. We need to reestablish a trade, or “barter”, system again. That's the sort of system where one thing of value is traded for another thing of value. For instance, if our barber friend worked in the barter system, then he would have rejected your $20 credit-bill. Instead, he would have asked for something of like value in return. Perhaps he needed his windows washed. So, in payment for your haircut, you would have washed his windows. Maybe he needed some food, and you gave him a loaf of bread and a large wedge of cheese for your haircut.

Barter is also the only system that works with precious metals. In our day and age if you were to go into the gas station and try to pay for a tank of gas with a $50 silver piece, the attendant would probably just call the police and have you arrested! But in a barter society silver and gold have real monetary value. Remember in the old West where the drifter that was passing through town gave the hotel owner a gold nugget to bed down there for a couple of days? That's the sort of system that treats everyone honestly and fairly.

My point in this broadcast was to just educate you a little bit about our current economic system, and not to try and convince you to try something new. After all, this economy is going to rebound soon anyway, right? And when it does you can go back to doing things the way you've always done them before.

And the Jews will continue to get richer. I'm Ed Cleveland...Thanks for joining the Nationalist Coalition again today.