1929 Crash vs. 2021 Crash: Economic Similarities

I’ve been studying the 1929 crash and what led up to it the last few days and the parallels are uncanny. We all know that history repeats itself, so if you want to know what’s coming, all you have to do is look at the past. You’re about to get a ‘crash’ course on exactly what happened in 1929 and what’s about to happen again… (and why).

Ok, so a lot has changed since the 1920s, but you’ll be surprised to see just how similar the events were that lead up to the Great Depression. In fact, when you watch the documentaries below, I think you’ll agree on how very interesting those similarities are.

You may not know this, but there were actually a few major stock market crashes in the early 1900s.

The crash and “Panic of 1907” was the catalyst and fuel for the 1913 Federal Reserve Act that created the Federal Reserve and the IRS Income tax. The government told us that the Federal Reserve was a “market stabilizer” and would protect us from crashes like the one in 1907, but as history has shown us – those bastards lie through their teeth.

From 1914 to 1919 (during and after the war), the fed once again increased the money supply, giving out millions of loans and printing money like it was growing on trees, creating an economic up-turn and prosperity for everyone it seemed. 1919 was also the end of WW1 and so there was a sense of optimism and American pride in the air as well.

When “The Fed” was created in 1913, It took the power to coin and print money away from the US treasury so that the Fed could now print money and loan it back to the treasury at interest. Prior to that, we had sound money backed by gold and NO Inflation. The Fed by the way, is a private corporation with no congressional oversight, but that’s another conversation.

So anyway, the 1907 crash was just a warm up to the 1920 crash as the ruthless and powerful elite were just getting started with their plans to consolidate wealth and take control of the United States. But in 1920, the Fed stop the printing and constricted the flow of money. They also began to call in their loans, causing bank runs, bankruptcies, and panic. The end result was that the stock market crash of 1920 collapsed over 5,400 banks outside the Federal Reserve system allowing larger banks to buy up competing banks and whole corporations for pennies on the dollar.

In fact, one powerful elite (or globalist as we now call them) said, “give me control of a nation’s money supply, and I care not who makes it’s laws.”

After the crash in 1920 (and the consolidation of wealth), it was ‘business as usual’ as the Fed once again begin to increase the money supply. So from 1921 to 1928, the Fed was printing money and handing out bank loans like there was no tomorrow. In fact, we call that period, “the Roaring 20s” because it was doing so well. The economy was doing well, and by the middle 1920s, it felt like everyone was making lots of money. Unemployment was low, prosperity was high, businesses were doing great, the stock market was doing great and everything seemed to be fantastic.

So as the economy progressed and word got out that everyone was “getting rich” in the stock market, more people began to take notice and participate.

“Buying on Credit” was a brand new concept in the 20s, which began bank loans and “margin loans” in the stock market. This buying on credit was a new concept and millions of people took advantage of it. So much so, that within a couple of years, roughly 30% of Americans were diving head first into the stock market and making money.

There were “ticker tape” everywhere – train stations, barber shops, cruise ships, restaurants – all sent and received by radio teletype. Playing the stock market became a new American pass time, almost as popular as baseball. Even the shoe shine boy was investing in the stock market as he learned about it from his clients.

There was a new kind of stock trade called a “Margin Loan”, which meant that you could buy shares of stock with only 10% of the money. You put up 10% and the broker would loan you the balance to buy the stock. The average lay-person could now buy $1,000 worth of stock for only $100 dollars. This allowed virtually everyone the opportunity to invest heavily in the market and speculate they did !

People were taking out bank loans, mortgaging their homes, investing their life savings, etc. This new way of buying on credit enticed and encouraged even more people to get in on the action. Many, if not most of the common folk: butchers, car salesman, delivery boy, shoe shine boy, barbers, everyone – was jumping into the stock market.

However there was a catch to these new Margin Loans in the stock market… They could be called in at any time, which was called a “margin call” and I’ll get to that in just a moment.

So as millions of people began to drive stock prices up in the mid to late 1920s, the market began to become detached from the actual economy.

That sounds eerily familiar to this year in 2020 as we have watched a hundred million people move from sports betting and gambling to online stock market trading apps like Robinhood or WeBull doesn’t it?

Oh and let’s not forget the trillions of dollars the Fed and government has been dumping into the market this year to “help fix the economy”.

By the way, the stock market is and has always been rigged or manipulated. Powerful, wealthy people can control or at least influence the market and or a particular stock – and so can Millions of “investors” / gamblers / speculators. For example: normally the stock market represents companies that are publicly traded and how well they are doing economically and financially. And likewise, buying shares in a company, allows you the shareholder an opportunity to take part ownership or invest in said company. But, it is possible to inflate the value of a company stock by buying lots of shares and artificially driving the value of the stock up beyond what the company’s real value might be.

This is exactly what happened in the 1920s and exactly what has happened this year (2020). The COVID / corona virus hysteria caused most states to shut down their economies, which in turn caused a giant drop in the markets. Many companies stock plummeted, but thanks to the Fed, the government stimulus spending, and millions of new stock market players, they revived the market / economy – well sort of….

The government dumped trillions of fresh new dollars into the system to help bring it back up and the stock market bounced right back in what experts have called a “V – shaped recovery”. ~ 50 million Americans are out of work, tens of thousands if not hundreds of thousands of companies are closed, shut down or out of business. The US Gross Domestic Product or GDP is down 30% and yet the stock market is booming ?

Needless to say but stock prices for most companies are WAY over valued, just exactly like 1929.

In fact, many stocks are seeing record highs…. just exactly as they saw in 1929 when millions of people artificially drove the stock market prices up (detaching them from organic economic growth in the 1920s.

Are you beginning to see where I’m going with this? 🙂

Our current stock market has become totally and completely detached from the economy and I would go as far as to say it has become detached from reality as well.

So… in the late summer of 1929, wealthy smart people began to quietly exit the markets – leaving millions of common folk to hold the bag for what was to come.

One of our current financial luminaries, Warren Buffet (whose net worth is roughly 500 Billion dollars), has always had the “buy and hold strategy” that has made him billions of dollars in the stock market. Additionally, he has always condemned holding gold because much better money could be made in the stock market. Well guess what? Mr. Buffet has just sold off millions of shares and has also recently bought Gold mining stocks.

If that’s not a wealthy smart person ‘quietly existing the market” just exactly as they did in 1929, then I don’t know what else to tell you.

The writing is on the wall for a perfect storm of a crash like we have never seen before. The only thing we’re missing right now to exactly mirror the 1920 or 1929 crash is for someone to start publishing rumors in the news paper to cause a market panic and mass sell off.

That’s right, in 1920, a certain someone (you’ll learn about in one of the following videos), began to run full page ads in the newspaper that certain banks were insolvent or bankrupt – which caused people to panic and begin a mass self off of their stocks. This caused bank runs, bankruptcies and panic with a domino effect that sent millions of people running to their broker to begin dumping their shares which in turn, sent the stock market into a free fall.

Why would someone deliberately crash the market? (You ask). Because… guess what…. that’s how the wealthy people make even more money. When the market crashes or a company stock plummets, people with money can then buy up whole corporations for pennies on the dollars. And so after the 1920 crash – more than 5,400 small and independent banks collapsed allowing larger banks to buy them up and squash their competition.

When it happened again in 1929 – more than 16,000 banks outside the federal reserve system collapsed. And as you know, the 1929 crash was the spark that ignited the largest depression we have yet to see. That depression lasted a decade and carried us into World War II.

Please watch the following 60 minute documentary for an in-depth overview and mind blowing representation of what happened in the 1920. This documentary will take you back in time 100 years to get a play by play view of exactly what happened.

One key difference between the crash of 1929 and what’s about to happen now is that they still had some-what sound money back then which softened the blow a little even though it was catastrophic for millions of Americans. Back then, the value of the dollar only began to fall off slightly after 1913 (causing ‘some’ inflation), but the amount of additional dollars that has been added or printed since then is totally insane. Obviously we have seen tremendous inflation since 1913, but if (when) we see a crash this time, the inflation and depression will make the 1929 crash look like a walk in the park.

Inflation is a loose watered down term that few people can explain, but it simply means that as the dollar becomes worth less, it takes more of it to buy the same stuff you’re accustomed to buying at today’s prices. In other words, with rampant inflation, we could see $8 a gallon gasoline or you might go to the grocery story and instead of spending $200 to fill your shopping cart – it would cost $500. I went to a box store the other day and bought a handful of 2×8 boards and was shocked to pay $400. I checked the receipt and the boards were over $20 each when in years prior, those same boards were $5.

If you enjoyed, the previous documentary above, this next one will fill in some gaps and give you a deeper understanding of what it felt like to be alive in the 1920s and what they went through after the catastrophe.

The following video is part 2 of the “1929 Great Depression” documentary. I just found this after posting this article. It too is very interesting, so I thought I’d add it here.

Now fast forward your mind 100 years to the year 2020 and realize that virtually no one believes a collapse and depression can happen here (or again), but it can and it just might. In fact, the talking heads are telling us lately that, “a great reset is coming” …and this predictive-programming is getting us ready to accept it. So if you think a major crash and depression can’t or won’t happen – think again.

By now, I’m confident you can see exactly where we are heading and that history is about to repeat itself. If you would like to go deeper and fully understand how and why those major crashes occurred (and who was behind them) in the early 1900s, please watch the next video to fully explain “the why”

In fact, you’re about to learn much more: why and who actually killed J.F. Kennedy, why and how virtually every war you can name for the last 100 years started, and much more.

“Fasten your Seat belt Dorothy because Kansas is about to go Bye Bye”.

This next video is 45 minutes and it is a MUST WATCH FILM !