Prohibition and The Crash

Prohibition and The Crash

Portuguese-language edition on Amazon Kindle

If you are seriously trying to unravel the reasons behind the Crash of 1929 and the causes of the Great Depression which followed, this will open your eyes. The project–a banking interpreter’s searching examination into a mystery daunting to economists–sifts even the forbidden causes.

This took 21 years to get straight!

Prohibition and The Crash, English version on Amazon Kindle

In hindsight, the causality blank-out defies comprehension. Economists and historians were able to look back on prohibition, the Crash and the Depression without noticing the causal links between them–assuming they coexisted by the sheerest of coincidence. Back then the connection between prohibition and the economy was asserted daily and hotly debated.

“No one man will ever realize how big it is, so lay off.” –Al Capone, July 1930

“When the time comes that we can look at this depression objectively it will be our duty searchingly to examine every phase of it.”Herbert Hoover, June 15, 1931.

Maryland Senator Millard Tydings used statistical data to refute every argument advanced by proponents of prohibition. He also documented hundreds of cases of legalized murder (or extrajudicial killing) of ordinary citizens and bootleggers by wielders of police powers. His 1930 book examines economic effects and how the 18 new powers granted Congress by the looter amendments to the Constitution plus the character of the American people doomed economic dictatorships from the outset.

Defending shoot-first prohibitionism was Herman Feldman, Professor of Industrial Relations at the Amos Tuck School of Administration and Finance, Dartmouth College–1927. The way he tells the story, all of the postwar economic growth was due to the beneficial effects of national prohibition. After the Crash, his output ceased.

Prohibition and the Crash also sheds light on the causes of the Panic of 1893, Panic of 1907, and several lesser financial convulsions. It just might help to understand recent crashes during the Reagan (1987) and Clinton (2000) administrations, for the same ingredients were there.

Never is anything but government responsible for causing economic collapse. The fact was widely known and published in 1775 by Adam Smith:

Great nations are never impoverished by private, though they sometimes are by public prodigality and misconduct.

About taxes Smith reflected:

It is the highest impertinence and presumption, therefore, in kings and ministers to pretend to watch over the economy of private people, and to restrain their expense, either by sumptuary laws, or by prohibiting the importation of foreign luxuries.

The worst Stock Market Crashes began in 1929 two weeks after the Jones 5 and 10 Law (Increased Penalties Act) was signed on March 2 (two days before Herbert Hoover took office as President). But the average chart slope went from positive to negative on or about September 2, 1929, as former prosecutor Mabel Willebrandt explained enforcement tactics in “The Inside of Prohibition” syndicated in 20 major newspapers. Once investors understood the Income Tax and asset forfeiture were weaponized against beer, the collapse began about September 2 and accelerated. See for yourself.

Words you can dance to

Clarity isn’t oversimplification

For financial, tax and banking translations, look me up.

 

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Atlas Shrugged, 1943

franciscodanconia1943

Young Francisco D’Anconias

Surely you’re thinking “The Fountainhead,” I hear you wonder… but neither book was written in a day. The Fountainhead was indeed part of the war effort against National Socialist collectivism–including its religious component. Safely ensconced within These States, Ayn Rand, age 38, read in the newspapers about how in the Europe she’d fled, Germans and Russians fought, starved, bled and died–whether enslaved to sacrifice for Communism or enslaved to save German NSDAP Christianity from “stock market jewry.” (Does this sound familiar? Occupy Wall Street?)

As usual, These States got sucked into the vortex of that foreign war after the attack on Hawaii. Newspapers and radio were the internet of the 1930s and 1940s. In their pages young Ayn Rand read about Sweden’s fantastic new Harden metal alloy, shadowy Match Kings and Beer Barons. She read about young men whose ambition led them to hire on with railroad maintenance crews in 1943 nazimayors1946before maturing into Copper Barons able to rattle stock markets into a panic with a gesture.  This latter news item was framed in exhortations to buy war bonds, with air raid signals and instructions on the facing page. She also read of the Allied Military Government putting some Nazis back in power while hanging others for genocide as she was writing Atlas Shrugged.

The same thing is happening today. Christian National Socialism, motivated by altruism, now targets a different semitic people and religion–all the while angling to monopolize and control drug markets through the only mechanism it understands… war, coercion, murder.  Totalitarian communist territory has dwindled to Cuba, China, North Korea, Venezuela and a tiny scattering of pestilent dictatorships likewise limited to war, coercion, murder as ways of getting things done in the name of altruism. The ku-klux fascists‘ competition? Lay or Gaian socialists claiming to be democrats, likewise motivated by altruism–and guided by pseudoscience to rule by violence.

Christians and Gaians alike are terrified of imaginary hobgoblins. LSD-possessed Manson clan communists plot with Saracen terrorists to lead Christian youth away from Jesus and confiscate their money and guns, worry the former–with some justification as to the money. The Gaians’ nightmares are animated by Ku-klux mercantilist plutocrats advised by mad scientists and Hell-bent on turning the planet into a rotisserie,–with urine testing with licensing regulations so that only their toadies have jobs. Again, their fears as to urine-test blacklisting are not at all unfounded.

This is the Cold War all over again, with different actors–but always and on both sides the same altruism and reliance on faith as opposed to reliable evidence. The one constant is the belief that altruism is a good enough reason to have someone else pick up deadly weapons and coerce some third party. But… by what standard is altruism or the initiation of force good?