 |
 |
 |
 |
|
 |
 |
The Soon Coming Judgment Of God Upon America and How To Escape It 313
It is difficult for Americans to come to grips with the fact that their total
money supply is backed by nothing but debt, and it is even more mind boggling to
visualize that, if everyone paid back all that was borrowed, there would be no
money left in existence.
1250
The loans the Federal Reserve started demanding payment on included margin loans for
stock market purchases. In 1929 you only needed to make a 10% margin payment on your stocks
and you could then borrow the other 90%. One can easily see that if the stock market was
inflated by borrowed money and all the sudden those loans began to be recalled it would cause
mass selling on the market so the loans could be repaid. This mass selling would cause a decline
in the market and the decline would wipe out the 10% equity position held by many investors. In
practical terms, the majority of the loans could never be repaid in a declining market. It caused
mass bankruptcies.
The market collapse and bankruptcies were a quick ticket to enormous fortunes for those
who knew about the Federal Reserves change in policy in advance. Eustace Mullins, author of
The Federal Reserve Conspiracy, writes that this collapse led to the creation of the large holding
companies we see today. He states:
The stock market crash of 1929 saw the formation of giant holding
companies, created from the misfortune of the smaller companies whose stock
prices had collapsed. These holding companies included those developed by some
of the owners of the Federal Reserve, including the Marine Midland Corporation,
the Lehman Corporation, and the Equity Corporation. It was an opportunity for
the bankers, who were responsible for the Depression, to enlarge and consolidate
their holdings.
1251
The bankers did not only enlarge their holdings in stocks but also in real estate. The New
American, a privately circulated publication among leading bankers contained an article in
February of 1934 encouraging banks to foreclose on mortgages as soon as possible. The
following excerpt exposes their intent explicitly:
Debts must be collected and loans must be foreclosed as soon as
possible… when the common people have lost their homes, they will be more
docile and easier to govern. People without homes will not quarrel with their
lenders.
1252
There were faithful Congressmen who recognized the Federal Reserve Act for what it
was, an evil scheme to steal the wealth of the nations citizens. One such man was Congressman
Charles A. Lindbergh Sr., father of the famous aviator. As the last man to speak before Congress
before the vote on the Federal Reserve, he told congress:
 |