"Into The Great Depression, Part 1: The Roaring '20s & The Creation Of The Fed" (Excerpt)

"Into The Great Depression, Part 1:

The Roaring '20s & The Creation Of The Fed"

by Tumous Malinen

Excerpt: "Something that has been a particular interest of mine is the Great Depression of the 1930s. It continues to be the deepest global economic malaise of modern times, which preceded the most destructive war in human history. The extreme nature of the economic contraction has intrigued me, in addition to the path that led to it. The latter mostly because of the role of the newly created central bank, the Federal Reserve, in it.

I’ve written extensively on the Great Depression in a book I am writing about forecasting financial crises. I think that the similarities between now and the era leading into the Depression are strikingly similar. This is why I decided to publish a series mapping the path of the U.S., and the world, into the deep global economic collapse. I start by mapping the route to the ‘Great Crash’, that is, to the collapse of the U.S. stock market at the end of October 1929.

Click image for larger size.

In just four trading bays between 23 and 29 October 1929, the Dow Jones Industrial Average (DJIA) collapsed by 29% wiping out massive amounts of financial wealth. While the 1929 crash did not start the Great Depression, it laid the groundwork for it. Worryingly we seem to be on a similar road that led to the Great Crash, which I will map in this first entry to the series. I will also detail the creation of the Federal Reserve, which played a major role in the financial mania that led to the crash.

What is notable with the period, which preceded the Great Depression, is that many leading nations across the world experienced an economic decline at the same time, which manifested into a global banking crisis. We are seeing signs of the same kind of global slowdown now.

Before we dig deeper, let me inform that I decided to the make my piece on the Systemic Meltdown free to read. This is because, I think that everyone should understand what such an event would entail for the world, and how we could be able to manage it.

Now, let’s enter the ‘history lane’."

Full, highly recommended article is here:

- https://www.zerohedge.com/

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"The Coming Economic Collapse"