1929 sandune...In August of 1929, the Fed began to tighten the...

1929 sandune...

In August of 1929, the Fed began to tighten the money supply continually by buying more government bonds. At the same time, all the Wall-Street giants of the era, including John D. Rockefeller and J.P. Morgan divested from the stock-market and put all their assets into cash and gold.

It was not accidentalSoon thereafter, on October 24, 1929, the large brokerages all simultaneously called-in their 24 hour "call-loans." Brokers and investors were now forced to sell their stocks at any price they could get to cover these loans. The resulting market crash on "Black-Thursday" was the beginning of the Great Depression.

The Chairman of the House Banking and Currency Committee, Representative Louis T. Mc Fadden, accused the Fed and international bankers of premeditating the crash. "It was not accidental," he declared, "it was a carefully contrived occurrence (created by international bankers) to bring about a condition of despair...so that they might emerge as rulers of us all."

He went on to accuse European "statesmen and financiers" of creating the situation to facilitate the reacquisition of the massive amounts of gold which Europe had lost to the U.S. during WWI. In a 1999 interview, Nobel Prize winning economist and Stanford University Professor Milton Friedman stated: "The Federal Reserve definitely caused the Great Depression."