From 1927 to 1929 the Fed deliberately created then burst a stock bubble using interest rates. Republican President Hoover signed the Smoot-Hawley Tariff act in 1930 to defend American industry, resulting in a trade war that was blamed along with Hoover for the Great Depression that was brought on by an economy bloated with debt and easy money during the Roarin’ Twenties boom. Hoover was blamed and lost re-election to Democrat FDR with his New Deal. Behind all were the actions of the Federal Reserve, the real power. Soon it will be clear if 2020 will be a modern era repeat of the Hoover script, this time with a Democrat whose “New Deal” will likely be green.
“Quantitative Tightening” (QT) and the Coming Bubble Bust: Will the “Federal Reserve” Engineer the Next Financial Crash to Topple Donald Trump?
F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”.
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