2.5 The Last Great Shaking

The last time global power structures shook was in the 1930s and 40s, in the build up to and aftermath of the last World War.

Bank failures during the Great Depression of the 30s frightened citizens of the United States, and they began hoarding gold.

Roosevelt declared a bank moratorium to forestall a run on the banks, and prohibited banks from paying out or exporting gold.

He then ordered all gold and gold certificates to be surrendered to the Federal Reserve for the fixed price of $20.67.

Congress then abrogated the gold causes that required that debt be repaid in "gold dollars" of the same weight and fineness.

Next, the government increased the price of gold to $35 per ounce, arbitrarily increasing the gold assets held by The Fed by 69%.

This enabled the Federal Reserve to inflate the supply of money.

This destroyed the integrity of our money as we had known it.

As a consequence of destroying the integrity of money...

...the market and economy of the United States apparently soared.

Around the world, similar financial and monetary crises were unfolding, bringing many countries to the brink of civil war, and resulting in transformations of governments.

During the 1930s and early 40s, financial and social crises in other countries fueled internal division and conflicts, with Germany, Italy, Spain, and Japan sacrificing their democracies in favor of authoritarian rule in a flight towards perceived safety from the socioeconomic chaos.

America be warned.

This flight from monetary and social chaos towards civil war and into the arms of authoritarian rulers coincided with the cracks in the external order and rising conflict.

The combination eventually drug humanity into a world war, and a deep reset of the world order.


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