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Panic of 1873 and The Long Depression

"A new economic superpower undermines established economic leaders. The collapse of complex financial instruments turn a boom into a bust. Banks fail in waves. Unemployment reaches up to 25% in some areas. A global depression holds on for more than two decades. Class warfare breaks out. Transportation networks stall—along with industries dependent upon them—as the main “fuel” for transportation disappears. Pandemic disease exacts a terrible toll. Religious fundamentalism skyrockets. Totalitarianism rises around the world.

I’m describing the 1870s-1890s. Hopefully, I’m not also describing the next couple of decades."

Historian Scott Reynolds Nelsen argues in the Chronicle of Higher Education that today’s financial crisis bears a much closer resemblance to the Panic of 1873 and the resulting Long Depression than to the more familiar Great Depression of 1929."

http://ieet.org/index.php/IEET/more/2770/

Panic of 1873
http://en.wikipedia.org/wiki/Panic_of_1873



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Can you say Northern War of Agression ???

Just thought some here might want to consider the FIAT Currency that Lincoln Created called "Green Backs". This was used to support a little thing known as the "Northern War of Agression". The Banking Cartels Lincoln empowered that fractionalised those "Green Backs" and oh yes 10 years of "Southern Reconstruction". You know, when Yankees burned and pillaged the South for an additional decade after their UnConstitional Central power grab, which killed 650.000 Americans. I am thinking these might just be a few of the factors that lead to the panic of 1873. BTW, for those of us in the South, that Depression began in 1861 and it didn't really end (for us) until the mid 1950's.

The Crash of 1929

Excerpted from
AGAINST
OLIGARCHY

by
Webster G. Tarpley

http://www.tarpley.net/29crash.htm

RP R3VOLution

Same thesis - article from Lew Rockwell from 10-20-08

The Panic of 2008 and Financial Socialization
by Michael S. Rozeff

"The Panic of 2008 parallels the Panic of 1873 in important ways. It differs in others. The comparison is instructive.
Considering the resemblance of 2008 to 1873, we may experience a serious depression of 3–5 years. The most important difference is the response of government."

http://www.lewrockwell.com/rozeff/rozeff231.html

Religious Fanatics

Will soon be here again. Yes, there are already some, but soon it will spread like the clap in a gay community.

p.s. for the gay people who may have taken offense, I give hell to everyone and you are not immune.

Is that why your name is "rod"?

Seems to me you're a bit too preoccupied with gays.

"The lady doth protest too much, methinks."

*****

Let the human mind loose. It must be loose. It will be loose. Superstition and dogmatism cannot confine it. John Adams

Ron Paul "Sign Wave Across the USA" -- November 5th!

Troll

Hateful old troll.

How old is old? Just curious.

I still get carded.

Sometimes.

____

BTW, you think it's fine for a DPer to smack gays around? We've got gays on this site who don't deserve to be made fun of. Is that a problem for you canyon?

*****

Let the human mind loose. It must be loose. It will be loose. Superstition and dogmatism cannot confine it. John Adams

Ron Paul "Sign Wave Across the USA" -- November 5th!

Republicae's picture

I missed out on the whole

I missed out on the whole "carding" era.

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

Well, Republicae, come on over.

I'll card ya until the cows come home.

*****

Let the human mind loose. It must be loose. It will be loose. Superstition and dogmatism cannot confine it. John Adams

Ron Paul "Sign Wave Across the USA" -- November 5th!

Republicae's picture

You would probably wear my

You would probably wear my card out....

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

LOL @ Republicae.

Smart and funny. Are you rich too?

Back off girls, he's mine!

Actually, that means you, peg.

*****

Let the human mind loose. It must be loose. It will be loose. Superstition and dogmatism cannot confine it. John Adams

Ron Paul "Sign Wave Across the USA" -- November 5th!

Republicae's picture

Well, my holdings are

Well, my holdings are substantial, but I have this inordinate fear that at my advanced age you might get me to rewrite my will before the honeymoon and @#$% me to death that night...but what a way to go!

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

Republicae's picture

Once more, me thinks you do

Once more, me thinks you do mistake the lady for someone else. Thus far it is you who appears to be trolling, not her.

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

Well we can't blame the Federal Reserve

for that one.

-------
The Fed is not a private bank. PRIVATIZE THE FED!!!
"The Federal Reserve Banks should simply be regarded as governmental agencies." -Murray Rothbard
"I now call the Federal Reserve the fourth branch of government." -Ron Paul

Yes, the production of oil will decline.

But so will the demand.

This is because the strength of the dollar will decline. All currencies - and all commodities - will decline. The cause is Peak Globalization. The war economy is finding it more difficult to impose its will. Local currencies will soon be the most secure investment.

Remember, oil was worthless before the economy was large enough to make use of it. This is not about the supply of oil.

bump!

bump!

Thomas Jefferson 1796, 1800, 1804; James Madison 1808, 1812; Ron Paul 1988, 2008, 2012; Rand Paul 2016.

it was caused by the gold

it was caused by the gold standard/demonetization of silver

Republicae's picture

It was actually caused by

It was actually caused by several things, the majority of which occurred during the 1860s and lets not forget these names:

J.P. Morgan, the Lehman Brothers, and Marcus Goldman had a hand in the Panic of 1873 and strangely thrived in the aftermath.

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

That's the whos who of the scum that still afflicts us

from the grave. Perhaps there is a pattern here - we need to stop monetizing scum!!

It can't be...can it?

It can't be...can it?

The "originals"...

May be in their graves but the dangerous things for all of us is that their minions, lineage and the institutions that they created have never been wealthier and more robust than they are today.

Republicae's picture

Amazing isn't

Amazing isn't it?

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

Republicae's picture

Yeah...go to my

Yeah...go to my profile....you should be able to do it from there. If not then let me know.

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

I just finished reading the book..

"The Panic of 1873" last year...

That was my conclusion as well. This is much more similar than 1929 is to today..

Thanks,

bookmarked for further review.

"We can see with our eyes, hear with our ears and feel with our touch, but we understand with our hearts."

Republicae's picture

"By the end of 1862, Chase

"By the end of 1862, Chase had sold only $23.7 million in bonds out of the $500 million authorized in February. The reason? Chase had refused to sell the bonds below par. The Republican Congress ensured that this would not happen again in the great loan act of March, 1863. It authorized the Treasury Department to issue $900 million in a bewildering variety of short and long-term notes and bonds, at different rates of interest. It required the secretary to sell the bonds at market value but to accept for their purchase the depreciated Greenbacks at par. That meant a creditor could purchase a 5/20 federal bond, that paid 6 percent annual interest in gold, with a currency worth only 65 cents on the dollar. As the currency continued to depreciate into 1864, this windfall would increase still more (by July, a creditor could purchase a bond with a currency worth only 39 cents in gold).

Not surprisingly, by December 1863, Chase had sold $400 million of the previous year’s 5/20 bonds, and $75 million of the 1863 bonds. Chase came to see the wisdom of accepting depreciated paper at par. An additional factor that increased the desirability and value of the bonds was the passage of the National Banking Act, in February 1863, for it required the national banks to buy bonds to back their notes. They could issue no more notes than the par value of the bond holdings.

An interesting measure of whether people lent their money to the government out of patriotism or greed is to contrast the percentage of all loans that were short-term versus long-term by year. In 1861–62, 85 percent of all loans were short-term (three years or less). In 1862–63, 71 percent of all loans were short-term. Only after Northern victories at Vicksburg and Gettysburg in the summer of 1863 seemed to ensure the defeat of the Confederacy did long-term loans surpass short-term ones.

After the war, the great question was: should the country return to hard money and correct at once the imbalances and malinvestments wrought by four years of inflation and war, or should it continue with soft money and attempt to perpetuate the wartime boom. The majority of Republicans again opted for inflation. Thus, the inflationary boom, inaugurated by the war and the Greenback, continued unabated until the panic of 1873 brought it to a close.

After the war, many Democrats wanted to pay off the debt in the depreciated Greenback. It was known as the Ohio Idea. While this was just, it was not wise, as it perpetuated inflation and set a precedent of quasi-repudiation through inflation. The Democrats made it their major issue in the 1868 presidential campaign, and made its author, Senator Pendleton of Ohio, their vice presidential candidate.

The Republicans now posed as the party of hard money and sound credit, and painted the Democrats as the party of inflation and repudiation. The Republican victory led to the passage of the Public Credit Act of 1869 mandating that government bonds be redeemed in gold."

http://mises.org/freemarket_detail.aspx?control=483

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

excellent! thank you

excellent! thank you Republicae! nice to get the education I should have gotten in 10 minutes vs my public school keynsian brainwashing i did receive.

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain