The Federal Reserve Caused The Great Depression

I’m hearing a lot about the Great Depression in the news recently. The stock market fell 400 points, people are losing jobs. But what nobody’s mentioning is the fact that the Federal Reserve caused the Great Depression. Obviously, there are some who disagree, but you’ll have to look at the facts and decide for yourself. I did.

Liberals are trying to blame the economy’s problems on a lack of regulation. It’s shocking to me that they can get away with being so deceptive. In fact, it is regulation that has caused and is still causing the worst economic disasters in history. Why do you think the Soviet Union collapsed? Well-intended socialist economic policies turned out to be fundamentally unsound, and their economy collapsed. Go a little further back in time to an event that everyone is currently talking about: the Great Depression. It was a normal down business cycle. It was only when the Fed stepped in that it spiraled out of control and became a terrible worldwide economic downturn.

Fannie Mae and Freddie Mac, government-sponsored enterprises, were bailed out by the government on the backs of American taxpayers. Read more about the fraud here, and see that Ron Paul warned about this problem 5 years ago.

Update 13 January 2010: Changed link from http://blog.freeny.org/?p=3548 (broken)