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United States had a credit bubble in 1929.....
...as prohibition, urbanization (US had 45% urbanization, highest in the world), growth of the auto industry, industrialization (1929 was peak Amerikan Industrial output, 43.2% of global output), allowed the middle class and rich in making huge profits (like Opium), which created huge bubble in property and bourse markets. USA surpassed the British Isle in GNP during 1900. (with Germany wanting to catch up with the British Empire as well, that cause WAR, as British block resources and markets for Germany)|
Debt was almost 250% of GNP. (like now)
how'd the Amerikan REgime solved it,
well, it allowed the asset market to burst.......
but Uncle Sam was lucky that the world then were a LOT MORE NASTY than nowadays.....
Nations were at loggerhead with each other, instability was rife in UK, Europe and their colonies (most of the world)....
THEN THE AMERIKAN REGIME did was today would be MINTING....
It OFFERED To Buy Gold with DOLLAR value at US$35 per ounce in 1934, instead of the normal US$20 per ounce of gold standard.
effective using DOLLAR devaluation to pare down the debt/gnp ratio...
In those deflationary times, with USA having huge global industrial production, meant getting more dollars or products for gold held...
together with instability that exploded into war by 1937.....
and postwar reconstruction from 1945 to 1958......
and by 1958, it had approximately 36,000 Tonnes of the monetary gold bullion....
"History as it really should be"
[ Last edited by greendragon at 2009-2-16 11:26 AM ]