Oct 3, 2008

$1 Trillion Game Of 'Chicken'

By Hal Lindsey

For over a week, American's have watched a perilous game being played by the economic powers behind Wall Street and the revolted taxpayers behind the U.S. Congress.

Frankly, I believe the average American has needed a drama coach more than a financial expert to understand what is really going on.

A little history gives us the best guide to understand what all of this drama is about. Federal Reserve Chairman Ben Bernanke admitted at a banquet on Nov. 8, 2002, that the Federal Reserve caused the Great Depression that began Oct. 24, 1929, and continued all through the decade of the 1930s.

The Fed did this by deliberately tightening up and withholding the money supply for lending, which immediately caused a domino effect. Highly leveraged investors, who were in the stock market on borrowed money, were instantly wiped out when their loans were called in. Banks that had loans out at over 10 times the amount of reserves had to close the doors. The depositors panicked and made a run on the banks to withdraw their assets, only to find there was none left. Businesses, farms, homes and savings were lost on a grand scale.