Destroying a gold standard was the key to the bankers being able to flood (and enslave) the world with their debt, while simultaneously flooding the world with the worthless scraps of paper currency which the bankers deliberately refer to erroneously as “money”.
Essentially, this is the official mandate of all “central banks”: keeping economies stable, and protecting the value of their sovereign currencies. In reality, today all Western, central banks are strenuously trying to accomplish the precise opposite: they are de-stabilizing all of our economies, by rapidly destroying the purchasing-power of our paper currencies.
When it comes to “economic stability”, as Young Greenspan, himself, explains so well, it was central bankers who caused the (first) Great Depression:
When business in the United States underwent a mild contraction in 1927, the Federal Reserve created more paper reserves in the hope of forestalling any possible bank reserve shortage. More disastrous, however, was the Federal Reserve's attempt to assist Great Britain who had been losing gold to us because the Bank of England refused to allow interest rates to rise when market forces dictated (it was politically unpalatable). The reasoning of the authorities was as follows: if the Federal Reserve pumped excessive paper reserves [emphasis mine] into American banks, interest rates in the United States would fall to a level comparable to those in Great Britain; this would act to stop Britain's gold loss and avoid the political embarrassment of having to raise interest rates. The “Fed” succeeded; it stopped the gold loss, but it nearly destroyed the economies of the world, in the process. The excess credit which the Fed pumped into the economy spilled over into the stock market – triggering a fantastic speculative boom. Belatedly, the Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures. The world economy plunged into the Great Depression of the 1930's.This account of the Great Depression by Young Greenspan is entirely different than the “history” which has (since) been re-written by those same, central bankers. Instead of the gold standard being an important safety mechanism, which prevents the sort of insanity which led to the Great Depression, the banksters have bombarded us with the propaganda that the gold standard was, itself, somehow the “cause” of the (first) Great Depression.
~ From: Young Greenspan and Gold, Jeff Nielson; Bulioin Bulls Canada
