Loading ...Many widely held opinions are generally wrong. Actually what ended the great depression, was the banning of gold ownership or possession of gold in 1934. For domestic US citizens only. Rare coins jewelers or dentists etc were exempt.
After that day (1934) gold could trade country to country bank to bank for trade adjustments. (until 1971) Any US dollars spent overseas were returned to USA, and exchanged for gold (stolen) at $35, when it was worth $140/oz black market privately. We lost half our gold reserves between ’34 and ’71 after protests.
In 1934 they confiscated all the peoples gold at $20/oz, then re-priced it at $35/oz. Basically it was a 70% devaluation of the US dollar so as to inverse prices mathematically higher, because of the deflation. Producers closing up.
Once the bankers confiscated all the gold, they were able to increase the paper money supply so as to finance the military war machine for the coming war in 1941. So, it was NOT the WAR that reversed the depression, it was actually the SECOND round of printing paper money after ’34. Without excess phony money there can’t be any wars.
The FIRST round of printing started after 1913. Federal Reserve act of 1913, was created so America could finance wars. Note, 1913 led to WWI in 1917. The excess money supply created to finance WWI flowed into stock market, farming, production excess etc gt over extended leading to the ’29 crash.
Which led to 1934. Wash rinse repeat.