Welcome To Hooverville

Tyler Durden's picture

Submitted by Jeff Thomas via InternationalMan.com,

In 1928, Republican Herbert Hoover was elected as president of the US. He took office in March of 1929. The following October, the stock market crashed, heralding in the Great Depression. Millions of Americans lost their jobs and homes and/or starved in the ensuing years.

Countless people, having nowhere to live, set up shantytowns that came to be known as “Hoovervilles.” Their new residents relied for the most part on public charities or begging for whatever income they could attain.

Was Mister Hoover responsible? Well, no. When elected, he had never held public office before and had not contributed to the cause of the depression. So why was he blamed? Well, whenever there’s disaster, it’s human nature to want to put a face on the cause of the problem. We tend to need to have someone at whom we can point our angry finger. (Almost immediately after the shooting of John Kennedy, the public were shown a photo of Lee Harvey Oswald holding a rifle; the day after the destroying of the Twin Towers, the television news showed a photo of Osama bin Laden. The viewers didn’t question whether these were indeed the culprits; they simply accepted them, as their need to have someone to blame was greater than their need to have truth.)

As a Republican, Mister Hoover became an easy target for Democrats seeking to further their own careers. Although the events that led up to the depression were caused by both Democrats and Republicans, both within politics and without, Mister Hoover was a convenient target for Democrats. In fact, the term “Hooverville” was created by Charles Michelson, publicity chief of the Democratic National Committee. Democrats also came up with other pejoratives, such as “Hoover blankets” for newspapers and “Hoover leather” for cardboard used in a shoe when the sole had worn through.

Throughout the 1930s, hundreds of Hoovervilles sprang up, housing hundreds of thousands of recently homeless people. There was even one in New York’s Central Park.

By ascribing the Great Depression and everything that went with it to Mister Hoover, it was a foregone conclusion that in the next presidential election, the Democratic candidate would win by a landslide.

For the next 20 years, Democrats held the US presidency and, in that time, the government made a major transformation towards collectivism. In spite of the fact that the Great Depression dragged on for around a decade, few Americans grasped the fact that collectivist policies prolonged the depression, rather than alleviated it.

America has recently completed another presidential election – one in which Americans were more polarized than ever before in their history. Although celebration for the victor has been moderate, the angst felt by Democratic voters has been pronounced. Countless Americans are stunned. Many have taken part in demonstrations and even riots and the remainder look out vacantly at their new world, as though they’ve been advised, “Granny’s just died and you aren’t in her will.”

The sense of disenfranchisement of Democratic voters is palatable and it would not be surprising if what we’re observing is the re-election of Herbert Hoover.

Like his predecessor in 1928, Mister Trump is a highly successful businessman who has never held public office before and has been seen by his voters to represent a move away from statism. Ironically, his presidency may unintentionally create the exact opposite effect.

There are a small number of us who predicted a Greater Depression for decades and believe that we entered a Greater Depression in 2007-2008. The major negative events have been delayed repeatedly and consistently, but we feel that we’re now getting close to the tipping point, where it will be impossible to prevent the coming crashes with more Band-Aid solutions. We’re at the precipice of the second half of the Greater Depression – the more severe half.

If history were to repeat, Mister Trump would find that, within months of his ascendancy to the throne, market crashes would occur, followed by monetary collapse, diminishment of entitlements, loss of homes and jobs and a return to Hoovervilles. It wouldn’t be surprising if the present generation of collectivist spin doctors choose to call the new shantytowns “Trump towers.” There can be no doubt that it would be a successful political move and, along with other pejoratives, would be extremely likely to result in a one-term presidency for Mister Trump, followed by a landslide victory in 2020 for the Democratic Party.

Should this occur, it would follow that the American people would take a second major lurch in the direction of collectivism, dwarfing the lurch of the 1930s. It might also be possible that the winner of the 2020 election becomes “president for life,” as did Mister Roosevelt.

And, of course, Mister Trump will be no more to blame than Mister Hoover but, as the present economic cycle will reach the tipping point on his watch, there can be little doubt as to who will receive the blame. Just as in 1929, the tail will blindly be pinned on the elephant, not the donkey, and a long era of increased collectivism will be heralded in.

To be sure, there are many of Americans who are presently hoping that a Trump presidency will mean a return to a more capitalistic US. The odd twist in this instance is that, if all Republicans had supported Bernie Sanders, the crashes would occur under a Socialist banner and it would be the Republican Party spin doctors who would be twisting the facts in favour of capitalism after the inevitable crashes.

What I believe we shall witness in the US will therefore be not only the second half of the Greater Depression, but, in addition, the “Second Wave of Collectivism.” This may well come under what will become known as “the Purple Revolution.”

Visionary economic prognosticator Harry Schultz often predicted that the Greater Depression would be “ten years down and ten years up.” It’s now been over eight years since the onset of the depression and we’re not yet close to the bottom, which would mean that, although Uncle Harry’s prediction seemed extreme back in the early 2000s, it’s likely to prove conservative on both sides of the prediction. It may well be that the recovery will be prolonged due to the same collectivism that dragged out the depression through the 1930s and 1940s.

Once again, the government itself may become the greatest deterrent to recovery, resulting in a long economic and social dry spell for those who choose to live in the US.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
cowdiddly's picture

"We could use a man like Herbert Hoover again.

Did'nt need no welfare state

Everybody pulled his weight

Gee that ole Laslle ran great

Those were the days"

Now get out of my chair meathead.

J S Bach's picture

As with all boom & bust cycles over the past 100+ years, it is the money-manipulators who are soley to blame.  There is no "business cycle"... only an expansion and contraction of counterfeit credit under the sway of a few (((powerful families))).  It is their system of usury which must be inevitably dealt with and extinguished by a courageous leader (could Trump be the one?).

bamawatson's picture

does sam drucker still have his store there ?

Shemp 4 Victory's picture

 

does sam drucker still have his store there ?

Yep, no Wall-Marts were ever built in Pixley.

floomby's picture

I think Hoover was in the chamber of commerce before becoming president. Also he followed two republican presidents. The pound was the king in terms of currency at the time. The thing that is the same is expanded banking credit. While there are some similarities the comparison falls a bit flat. History may not have been kind to Hoover, and Hoover may have done a bad job, but he is miles better than Trump.

Fathead Slim's picture
Fathead Slim (not verified) floomby Nov 29, 2016 8:24 AM

" but he is miles better than Trump."

Only if you accept the idea that "experienced" politicians are more capable than private citizens. An "experienced" politician is like an "experienced" diaper. The experience lies in becoming full of shit.

DownWithYogaPants's picture

It is called the "business cycle" when private central bankers  / bankers row the economy to allow them to buy assets for pennies on the dollar and control the political landscape.

Please watch "The Money Masters" by Bill Still for a complete history:

https://www.youtube.com/watch?v=UrJGlXEs8nI&t=4396s

I Feel a little Qeasy's picture

...'he is miles better than Trump'

 

How the fuck do you work that out chump? He hasn't had a single day in the job yet!

Déjà view's picture

Hooverville of 'Bonus Army'...they wanted WWI comp immediately-not 1945 as planned...(why 1945? quite a few would have died?)

 

Ugly period in history and the players were then President Herbert Hoover, U.S. Attorney General William D. Mitchell, and senior Army officers Douglas MacArthur, Dwight Eisenhower and George Patton. When later discussing the military operation against U.S. World War One Vets at the U.S. capitol, Major Dwight D. Eisenhower, later President of the United States, it was "wrong for the Army's highest-ranking officer to lead an action against fellow American war veterans".

"I told that dumb son-of-a-bitch not to go down there," Dwight D. Eisenhower would later say of General Douglas MacArthur's decision to launch a deadly attack on protesting U.S. World War One Veterans and their families.

 http://www.salem-news.com/articles/november302011/occupy-1933.php

A Nanny Moose's picture

Meh...Rhymes (historically) with Shay's rebellion.

Fathead Slim's picture
Fathead Slim (not verified) Déjà view Nov 29, 2016 8:21 AM

It has been said before, but Congress could simply have made the bonuses into negotiable instruments that were the property of the bonus recipients so they could sell them for whatever the market would bear.

Typically, politicians have no understanding of economic realities. Promises are their solution and they never intend to keep the promises.

Shemp 4 Victory's picture

Trump can avoid this if he comes clean with America during his first State of the Union address. This is the only time he can do it and maintain credibility.

The state of the union is bleak. Trump needs to tell it like it is, no bullshit, explaining the situation, how we got here, how the economy is way worse than the rigged government figures indicate, and how everyone (including the Hamptons) is going to have to endure difficulties before things start to improve.

If he waits a year and then tries to tell everyone, all you'll hear is "why didn't you tell us a year ago".

bobdog54's picture

Excellent advice. I believe he has alluded to it in his campaign but he needs to get very definitive before the end of January.

Mazzy's picture

And the jewish connections to why all of that is so.

He needs to explain that the Mossad did 9/11, and we should demand reparations for the attack on the USS Liberty and the machine-gunning of our sailors in life rafts by the Israelis.

Mr. Trump needs to explain that the "fed" is an evil organization and is neither federal, nor has a damn thing reserved for the goyim citizens of the united states.

 

New World Chaos's picture

JFK tried this with his "ruthless and monolithic conspiracy" speech and he got whacked.  Hopefully it would be a bit different with Teflon Don.  If they whacked him after he tells the truth so forcefully, there would be civil war.  Especially if he alludes to Pizzagate.

ersatz007's picture

"Shit's all fucked up and shit. But we got this guy - Not Sure - and he's gonna fix everything."

Miss Informed's picture

If he was going to come clean, he would have to come clean about the "terrorist attacks of 9/11". But that's not going to happen. He has too much invested with the enemy who has infiltrated his family even.

Fathead Slim's picture
Fathead Slim (not verified) Shemp 4 Victory Nov 29, 2016 8:17 AM

That'll require Trump knowing what's what. Does he?

algol_dog's picture
I never meant to cause you any sorrow
I never meant to cause you any pain
I only wanted to one time to see you laughing
I only wanted to see you
Laughing in the purple rain Purple rain, purple rain
Purple rain, purple rain
Purple rain, purple rain
I only wanted to see you
Bathing in the purple rain
P4K's picture

‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate’.

 

Andrew Mellon, Herbert Hoover’s Treasury Secretary


Flatchestynerdette's picture

Didn't need no welfare state

That's because Roosevelt hadn't put it in yet. And that's the point of the column - none of the bennies were in place until after the Great Crash but we were still on the Gold Standard at that time so there was some sanity. That rock solid promise that a US Dollar was worth its weight in gold went bye bye and now we're floating on helium. The next crash is going to convulse the planet but I want to know if its going to take just the elites/1%'ers or all of us?

Damn those globalists who also went to China in the 70's.

CHoward's picture

I literally dread the thought but I do fear for our future and Trump has NOTHING to do with it.

VonPumperDic's picture

 

 

 

Obamaville, sounds good to me......i.e. ObamaCare...both mean the same to me, a mediocre man's idea of great

Shemp 4 Victory's picture

Isn't Obamaville the capital of our 57th state, Alobama?

NoDebt's picture

It's already happening.  You just don't see the breadlines because they're done electronically now by EBT cards.

 

thinkmoretalkless's picture

The root of our future problem is our "education" system which has promoted emotional responses over critical thinking for decades, thus creating fertile ground for the MSM to sow their propaganda.

NoDebt's picture

That is dead-on.  Been saying that for years.  At some point, if you want to kill the collectivist monster you have to go into it's lair- education.

 

ersatz007's picture

I find your comment offensive.

LetThemEatRand's picture

I think the author is dead on.  Maybe they are running up the market so it hits all time highs just as Obama leaves office.  It would be a nice part of the establishment uniparty narrative when the crash happens say 9 months into Trump's presidency.  The globalists are not dumb.

Miffed Microbiologist's picture

Completely agree. The goal now for the Democrats is a failed presidency so they can retake Congress. This is the obvious play and they with thwart Trump at all cost. Trump needs to keep the public engaged and shine the light on their shenanigans or he is doomed.

Miffed

GunnerySgtHartman's picture

I find it interesting how the author left out the fact that the Fed was a major contributor, if not THE largest contributor, to the Great Depression.  The Fed allowed the money supply to contract by 30% - 35% between 1929 and 1933. Hell, even Bernanke said the Fed was at fault for the Great Depression!  And yes, Hoover got the blame for that, too.

MASTER OF UNIVERSE's picture

TrumpO the AssClown-ville will result in TrumpO's assassination.

Shemp 4 Victory's picture

The whole process takes place solely in your skull.

flyonmywall's picture

The Great Depression was caused by the Federal Reserve causing irrational exhuberance, and it was prolonged by the Federal Reserve raising rates when they should not have. In other words, it was engineered the the people in charge.

The next Depression will be the same thing. The seeds for it have already been sown by Greenspan, Bernake and Yellen. Same as it ever was.

 

RMolineaux's picture

Of course.  It's always the Fed's fault.  (Sarc.)

Bopper09's picture

Exactly.  A country will never prosper with a foreign bank controlling the money supply and stealing interest on that money creation.

Herodotus's picture

The Federal Reserve set interest rates at too low a level in an attempt to accommodate the unwise British desire to restore sterling to the gold standard following WWI at the pre-war level of $4.86 to the pound.   This loose money policy by the Fed is what caused the "roaring 20's" boom.  When the Fed finally raised rates and slammed on the brakes, the Crash was the result.

ajkreider's picture

Wow.  The excuses start already.

the.ghost.of.22wmr's picture
the.ghost.of.22wmr (not verified) Nov 28, 2016 11:31 PM

Someone's college term paper masquerading as a ZH article?

RMolineaux's picture

Where does the author get the idea that the "collectivism" of the FDR years prolonged the depression?  The US fell back into depression in 1937 because the Fed and the congress were frightened that the budget was too far out of balance and applied traditional restrictive measures to reduce the deficit. Note that this application of Fed policy was in strict conformity with Republican principles.  

Umh's picture

Pouring milk and the ground and killing livestock to keep prices high was so very sensible? Yes FDR and his policies prolonged the depression.

Jethro's picture

Its a shame polio didn't completely finish him off

bornlastnight's picture

Actually it was Hoover who wanted to balance the budget by raising taxes...and the "crash" didn't happen in 1928.  The market actually regained most of it's losses of 1928 in 1929.  It wasn't until 1932 that the market actually "crashed" kicking off the depression after Hoover's tax moves.  Then FDR came in in 1933 and really fucked things up but good.

ipso_facto's picture

The stock market crashed in October 1929.

floomby's picture

On the 21st to be exact.

Son of Captain Nemo's picture

Got that analogy "way wrong"...

We can only wish that this was 1929 Hooverville!