- Wikipedia: Great Depression
The US banks lent loans not only to Europe, Asia and Central America. It was also very easy for US citizens to get consumer credits for cars, washing machines, refrigerators etc.
The US big banks also earned a lot of money in the US, but there were, because of the good economy, more and more smaller banks. Therefore, the FED (MoneyMonarchy) raised the key rate in August 1929. This stopped the generous granting of loans.
Between 1929 and 1933 11.000 out of 25.000 banks disappeared from U.S. market. The depositors lost most of their money, the big banks took over their market shares.
Many investors had already deducted capital from Europe because of the positive values in the US in order to invest it on the New York stock exchange.
Because of the increased interest rates, the lending stopped, unemployment in the United States accelerated to 25% by 1932 and initiated the Great Depression, which lasted until 1941.
Germany hit it worse:
The US banks now demanded their money back, which brought many companies and banks in Germany into trouble. Unemployment exploded. The social situation has worsened.
The US (money Monarchy) and its allies were now again afraid of loosing their reparation payments.
- The young plan was the result
The plan was co-authored by Owen D. Young, head of The U.S. major General Electric. His Plan provided for a limit of 121 billion gold marks. The earlier Dawes Plan allowed for the payment partly in goods. The Young Plan now only called for goldmark.
These monetary demands increased unemployment even more rapidly. But we know by now that the US MoneyMonarchy loves riots to advance its interests.
In addition, the Young Plan created the “Bank for International settlements” (BIS).The BIS is known as the “Bank of Central banks” and has an important role in the cooperation of all central banks of the member nations and with other financial institutions. It manages the currency reserves of the member banks.
This is regarded as the replacement of Great Britain as the world power.
As the articles of the FED will not allow their direct involvement in the BIZ, three U.S. major banks: J. P. Morgan, First National City Bank of New York and the First National Bank of Chicago (later Chase Manhattan), the U.S. financial elite representing MoneyMonarchy in the new Institution.
Gates White McCarrah was appointed as the first president of the BIS, he has been a member of the Reparation Commission of the German Reichsbank since 1924 and Director of the New York FED until 1930.
In June 1931, the german government of Brüning stated that it could no longer meet its payment obligations.
On 20 June 1931, U.S. President Hoover promptly issued the Hoover Moratorium, which, contrary to the will of France, suspended payments for one year. Nevertheless, a german state bankruptcy threatened.
In July 1932, in the Conference of Lousanne the reparations for the first world war were suspended with the request of a symbolic final payment,
Since the mid-twenties, US banks have invested considerable sums in german industrial enterprises. Particularly in the “Allgemeine Elektrizitätsgesellschaft (AEG), die Vereinigten Stahlwerke und die Industiegemeinschaft Farben (IG Farben)”, which dominated the chemical and steel sector.
Thanks to the acquisition of Opel and the development of Ford’s their capital was tied up. They couldn’t afford a state bankruptcy, they wanted to see growth.