Is The Deep State Creating Another "Crash Of 1929"?

Tyler Durden's picture

Authored by Jeff Thomas via,

Regarding the Great Depression… we did it. We’re very sorry… We won’t do it again.

– Ben Bernanke


Waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the roadeither too much inflation, financial instability, or both.

– Janet Yellen

In his speech above, future Federal Reserve Chairman Ben Bernanke acknowledged that, by raising interest rates, the Fed triggered the stock market crash of 1929, which heralded in the Great Depression.

Yet, in her speech above, Fed Chair Janet Yellen announced that “it makes sense” for the Fed to raise interest rates “a few times a year.” This is a concern, as economic conditions are similar to those in 1929, and a rise in interest rates may have the same effect as it did then.

So let’s back up a bit and have a look at what happened in 1929. In the run-up to the 1929 crash, the Federal Reserve raised rates to 6%, ostensibly to “limit speculation in securities markets.” As history shows, this sent economic activity south rather quickly. Countless investors, large and small, who had bought stocks on margin, would be unable to pay increased interest rates and would be forced to default. (It’s important to understand that the actual default was not necessary to crash markets. The knowledge that investors would be in trouble was sufficient to send the markets into a tailspin.)

Mister Bernanke was quite clear in 2002 when he stated that the Fed would not make the same mistake again that it made in 1929, yet, then, as now, there’s been a surprise victory by a Republican candidate for president. Then, as now, a wealthy man who had never held elective office was unexpectedly in the catbird seat and had the potential to endanger the control of the political class, at a time when that political class had been complicit in damaging the system by creating massive debt.

Then, as now, conditions were ideal for the Deep State to create a solution to all problems: An economic crash was inevitable; therefore, create a trigger for it to occur and blame the collapse on the conservative political outsider. Demonstrate to all that the collapse was due to the greed of the outsider and those who were of like mind. Use that leverage to demonstrate to the hard-hit populace that what was needed was the opposite of what the outsider had proclaimed. Recommend far greater control by a new government that was staunchly liberal—a government that would change the political landscape in such a way that all those who suffered would be saved by a benevolent collectivist government.

And, of course, when it’s stated that way, it’s an easy sell. In 2017, it will be an even easier sell than it was in 1929, as the new president has already set himself up for a fall. In his inauguration speech, he focused on a single topic—the return of power to the people and away from Washington’s bureaucracy.

Beginning by decrying Washington for what it truly is, he stated that “for too long, a small group in our nation’s capital has reaped the rewards of government while the people have borne the cost. Washington flourished—but the people did not share in its wealth.”

He then went on to describe that his presidency would bring about a metamorphosis:

I will never, ever let you down. America will start winning again, winning like never before. We will bring back our jobs. We will bring back our borders. We will bring back our wealth. And we will bring back our dreams. We will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation. We will get our people off of welfare and back to work—rebuilding our country with American hands and American labor… We will reinforce old alliances and form new ones—and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth… We will not fail. Our country will thrive and prosper again.

Of course, new presidents are prone to making big promises when they first take office. However, Mister Trump has, in his brief speech, effectively declared himself the enemy of the Washington bureaucracy. In so doing, he’s left himself wide open to be the fall guy if the economy does not rebound, if the average American’s lot does not improve, and if the US does not dominate the world through an expanded military.

In short, the Deep State and their cronies, who were instrumental in creating the economic, social, and political house of cards that now exists, have the perfect opportunity to bring on the collapse and blame the new president for it.

Were Mister Trump to have honestly stated that the US is effectively a house of cards and that he’ll begin the laborious job of trying to salvage what’s left of it and begin to rebuild it, he would have provided himself with a justifiable excuse when the house of cards does collapse. However, by making such lofty claims to “Make America Great Again,” he’s lost this opportunity.

In the last year, whenever I was asked who I hoped the Americans would elect as their president, I replied, “Bernie Sanders.” To those that were shocked by this answer, I would add, “An economic collapse is inevitable. No one, no matter how capable, can prevent it. The best that can happen is that the collapse occurs under a president who’s an avowed socialist. That would ensure an eventual return to smaller government and more conservative economics.”

As unfair as it may be, a nation’s people almost always blame whoever is on watch when a collapse occurs. It matters little who or what is actually at fault. People need a “face” to vilify for the disaster and the sitting leader is almost always spontaneously chosen by a nation as that face.

And, of course, the opposing party invariably makes the most of the situation. Just as in 1929 and for years thereafter Herbert Hoover received the lion’s share of the blame for a Wall Street crash and the subsequent Great Depression, even though he was not at fault, so too will the US come to blame the new president who made promises that were far beyond what he could deliver.

The die is cast. The patsy-in-chief is now installed. The media will do all they can to discredit Mister Trump and civil unrest will be funded by his opponents. The US economy is more debt-laden than any country in the history of the world and, historically, this has always resulted in economic collapse. At present, there are scores of triggers that could bring about collapse. Any one of these black swans could do the job, but it’s entirely possible that the Federal Reserve will serve once again as the trigger, as it did in 1929.

This is unquestionably the smart way to play the game. Rather than wait for a random occurrence, if a date is set for a controlled collapse, those connected to the Deep State will have a brief time to disconnect their wealth from the system, as was done in 1929.

The trigger would be pulled by the Fed and the US economy would go down in as controlled a fashion as Building Seven in the World Trade Center.

When is this likely to occur? Herbert Hoover was given just under eight months. The date for the next collapse could be earlier or later. But the question is not when that date might be, but whether we’ve prepared ourselves for the eventuality.

*  *  *

The Fed could start its controlled demolition of the US economy any day now. This collapse will be much worse and last much longer than the Great Depression or the 2008 financial crisis. Doug Casey and his team have critical, time-sensitive information about preparing for this economic meltdown. They’re sharing need-to-know details in this urgent new special report. Click here to download the PDF now.

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Harlequin001's picture

I stopped when I got to here.

'by raising interest rates, the Fed triggered the stock market crash of 1929, which heralded in the Great Depression.'

The Great Depression was triggered by British dumping of silver onto the precious metals markets in 1930-33 as a means to force China off a silver standrad. Not the stock market crash of 1929.

Muppet's picture

not gonna happen.   its up, up and away.   UBER lost $4B (of course non-GAAP only $3B) so the market is to the moon.   

Blue Balls's picture
Is The Deep State Creating Another "Crash Of 1929"?

No just the fuc)*() Federal Reserve.   

Mr.Sono's picture

Trump flip flopped with fed. He wants them to lower the rates. Let's see if fed will start lowering the rates again.

Fester's picture

Maybe the Magic Cheeto™ will audit the FED after the crash?

Donald Trump's picture
Donald Trump (not verified) Fester Apr 17, 2017 4:23 PM

Maybe we should ask Alex Jones, the father (and mother) of all conspiracy theories.

But wait... (dramatic pause) ... he's just PRETENDING.

Lawyer: Alex Jones is Just Pretending on His Show



I wonder if he's also just pretending to support Trump after he switched into Flipper mode.

chumbawamba's picture

The whole "Deep State is Out to Get Trump" meme is past its expiration date.  Hasn't this guy noticed that Trump is now the darling of the Deep State?

No, they'll blame it on someone against whom they can use it as a casus belli.

I am Chumbawamba.

JRobby's picture

Death is all around now.

Yellen, a totally owned tool of the elite will kill all portfolios eventually.

The elite plan, interrupted by the Trump win, but seemingly only for a moment? Have recovered and have somehow gotten us right to the brink of WW III which would have been the same result with Hitlery. Except Hitlary would have shut down alt-media and started collecting the guns by now.


Manthong's picture

Well, at least it looks like we will have plenty of war to distract us from the financial collapse.

PrayingMantis's picture



... "It is better to light one candle than curse the darkness" ~ an ancient Chinese proverb

     ... or perhaps, I definitely need a bigger tinfoil hat ;)

... Darth Trump is trying his best to be a "member" of the American Deep State and the Global International Cabal ... or imagine a lone salmon fighting against the waterfall of the Deep State and Globalists to reach his goals, but gave up after only 76 days ...

“The finest trick of the devil is to persuade you that he does not exist.” ~ Charles Baudelaire

 “There’s a shadow government running the country, and it’s not up for re-election.” ~ DC Insider Mike Lofgren

... so far, I haven't seen Trump's name (nor his various owned-corporations) on any of those Deep State and Global International Cabal lists of memberships ...


To understand the US Shadow Government or Deep State and the Globalists, one has to dig deep into the who's who list of members ... and ...
... who controls the American Deep State and Global International Cabal? >>> 

... The Kosher Nostra, of course ... (((Red Shield))) via Central Banking System, Corporations, Real Estate holdings, Big Pharma, Oil & Gas, Energy, MIC, etc..

This is the Terra Incognita >>> "Deep State: Where the Shadow Government Meets the Corporate Controllers"  >>>

... and who are America's Deep State? According to the link above,

    There are four main organizational players:

The Council on Foreign Relations (CFR) >>> ... and members are here >>>
The Business Roundtable (BRT) >>>
The American Bankers Association (ABA) >>>
The US Chamber of Commerce (USCoC) >>>

   But of these four, two enjoy especially intimate access to the Executive Branch - The Council on Foreign Relations (headed up by David Rockefeller) and The Business Roundtable

... I would like to add that part of this Deep State are these three supporting actors and two fraternities (I'm not including the various masonic groups nor the various Roman-Pope-based groups):

1. The Bohemian Grove (aka Bohemian Club) >>>   and here >>>

2. Domestic Security Alliance Council or DSAC >>> or here >>>

... This “sales brochure” bragged of offering member corporations:
“Centralized access to security information not only from the FBI, but from all federal government entities, including the Department of Homeland Security, FEMA, the IRS, U.S. Coast Guard, and the U.S. Secret Service . . . .”

To repeat: DSAC corporations were being given “centralized access” to “security information not only from the FBI, but from all federal government entities.”

... the DSAC member corporations are: 3M, American Express, Bank of America, Barclays (Note: this is a British multinational banking company headquartered in London.), Boeing, Bristol-Myers Squibb, CIGNA, Citigroup, Coca-Cola, ConocoPhillips, Ernst & Young, FedEx, DuPont, General Electric, KPMG International, Mastercard, Merck & Co, NextEra Energy, Time Warner, Walmart.  There could be others too.

... Also note the "FBI logo" on the DSAC website ... now, you'll understand why Comey Chameleon (former: General Counsel and Senior Vice President of Lockheed Martin; General Counsel at Bridgewater Associates; Senior Research Scholar and a Hertog Fellow on National Security Law at Columbia Law School; Board of Directors of HSBC Holdings) would dance around Trey Gowdy's pointed questions.

... "We’ve seen that a small nexus of individuals affiliated with the Business Roundtable and the Council of Foreign Relations are receiving FBI-compiled data via the DSAC front organization from every branch of the government. The extraordinarily extensive executive branch affiliations with the CFR provide one reason to believe they may even have been the originating force behind the NSA mass surveillance program."

3. Manhattan Institute >>>

The certain Fraternity Groups:

 Skull and Bones (almost everyone knows about this group and if you'd like to know more, simply google it)

 Alpha Phi Omega Fraternity (APO)

 ...notable members are here >>> T Rex, Clintons, M. Obama, R. Gates, etc. >>>

... curiously, one notable member is not APO-listed ... he's T Rex or Rex I-didn't-want-this-job-my-wife-told-me-I'm-supposed-to-do-this Tillerson ( ... however, in his biography here,!, it says he pledged APO in U of Texas. ...


... and who are the Global International Cabal?

1. Bilderberg Group >>>

2. Trilateral Commission >>>   and here >>>

"Upon reading the 1970 book Between Two Ages, David Rockefeller lured its writer, Professor Zbigniew Brzezinski, away from Columbia University to become the Chairman and co-founder of the Trilateral Commission in 1973. Brzezinski, who later became the mastermind of Jimmy Carter’s foreign affairs and national security blunders, is still looked to as a policy guru by the liberal media today. Using the same collectivist mindset, objectives and premise as the CFR, Rockefeller funded and set up the New York-based Trilateral Commission with Zbigniew Brzezinski as its intellectual architect and purposely patterned after Brzezinski’s book. >>>


... in short summary, (and there could be others), these are the Deep State Shadow Government ...




Chupacabra-322's picture

@ JR

"Well that's great. That's Fuck'n great man! Now what they fuck are we supposed to do!? We're in some real pretty shit now man!"

"That's it, man. Game over, man. Game over! What the Fuck are we going to do now!? What are we going to do!?"
-Hudson, from the film Aliens.

Laddie's picture

I agree but I cannot blame the average Trump supporter, now if they read ZH and were truly INFORMED, then I doubt they would be so pro-Trump. On some issues, a very few, he is better than Hillary. And for that little bit we should be grateful.
Hillary would have bombed Syria and been at war with Russia by now, at least Trump will take a little longer.

IF you would like a chance to vent some anger and frustration, A good helmet and eye protection is a must:
Fun Days: Richard Spencer and Antifa to be at Auburn University on Tuesday, April 18, 2017!
"Update: The It’s Going Down website has announced that some Black Bloc from Atlanta are coming to Auburn. If you missed all the action in Berkeley, come to Auburn on Tuesday."

NewAnubis's picture

Your analysis, Laddie, I believe is a sound one. Might I also remind the readers/voters that the election sentiment was far more a condemnation of the existing malfeasance than it was endorsement of a savior. Anyone, literally anyone, had at least a scintilla of a scent of hope which was greater than the guarantee of 0 inherent in the (((choices))) presented. 

MalteseFalcon's picture

Every market bubble is created by the FED holding interest rates too low for too long.

Every market crash is created by the FED raising interest rates until a crash occurs.

Trump needs to be telling the truth about the situation right now, so he doesn't get blamed.

It's all about who will handle the crisis and how it will be handled.

If Trump gets to handle the crisis, I wonder how he will handle it?

Trump does have a plan, right?

Croesus's picture

I've been saying the "Big Collapse" will happen on Trump's watch since last year...

1. It allows the 'Creep State' to blame Populism/Conservativism as an ideology.

2. The 'Creep State's' goal, is the NWO; what better way to get 'The Sheeple' to swallow the NWO, and a permanent state of global Communist-like crap than through an engineered collapse?

3. Math - many credible thinkers have been "calling for the collapse" for years. Their bodies of knowledge, professional skills may vary, but despite their various approaches, they still reach similar conclusions, in a 1-4 year timeframe. All it will take, is a single catalysing event, which will spark a chain reaction...add to that, the fact that politicans are generally inept when it comes to money & economics, and you have a recipe for problems being amplified (since most pol's will take the political solution, as opposed to the sensible one).

Mr. Universe's picture

But now they control the buying and selling of the majority of volume on the markets so they can keep prices where ever they want, they can scalp the shorters and kill the margin accounts. They have every tool to make sure the institutions and independant investors are at the full mercy of the banksters. All true, except for the part where the banksters have mercy.

Harlequin001's picture

And no way to justify that silver should be at US$1,000/ounce.

brockhardman's picture

Did he say he would have voted for a socialist?  I really lost my interest in his opinions after that...

adanata's picture

He was saying the "socialist" would be blamed for the collapse and therefore save us from socialism because the idiot public would reject whomever was in power at the time of collapse... rather than understand the actual reasons for the controlled demolition.

NidStyles's picture

That's a lame mantra pushed by the MSM that goes along with their "uneducated middle-America" narrative.


It's pure bullshit from the onset.


I assure you, if he get's blamed by anyone, it will be by the media. The rest of us know what the fuck is going on already. The goyim know...


To better understand the narratives and situation, just view the media and the pundits as what they are. Foreign invaders, and representative of those invader's interests trying to leverage political power from the Whites, and then everything will make sense to you. It will make sense, because that is exactly what is going on here. They recently threw the Asians off the bus as well, because they realized that the Whites and Asians will stick together, because we are related both genetically and spiritually. We both want the same things for the most part.

Additionally, anyone that uses the terminology of those invaders, especially the Human Right's bullshit is also arguing for their interests.

Harlequin001's picture

The rest of us (on ZH) know what the fuck is going on already...

JRobby's picture

According to ancient legend the white race results from a nuclear explosion in what is now the Gobi desert some 30,000 years ago.  The civilization and techniques which made the explosion possible were wiped out.  The only survivors were slaves marginal to the area who had no knowledge of its science or techniques.  They became albinos as a result of radiation and scattered in different directions. 

Some of them went into Persia northern India Greece and Turkey.  Others moved westward and settled in the caves of Europe.  The descendants of the cave-dwelling albinos are the present inhabitants of America and western Europe.  In these caves the white settlers contracted a virus passed down along their cursed generation that was to make them what they are today a hideous threat to life on this planet.  This virus this ancient parasite, is what Freud calls the unconscious spawned in the eaves of Europe on flesh already diseased from radiation.  Anyone descended from this line is basically different from those who have not had the cave experience and contracted this deadly sickness that lives in your blood and bones and nerves that lives where you used to live before your ancestors crawled into their filthy caves. 

When they came out of the caves they couldn't mind their own business.  They had no business of their own to mind because they didn't belong to themselves any more.  They belonged to the virus.  They had to kill torture conquer enslave degrade as a mad dog has to bite.  At Hiroshima all was lost.  The metal sickness dormant 30,000 years stirring now in the blood and bones and bleached flesh.  

William S. Burroughs - "Exterminator! - Astronaut's Return"

Creative_Destruct's picture

"This is a war universe. War all the time. That is its nature. There may be other universes based on all sorts of other principles, but ours seems to be based on war and games. All games are basically hostile. Winners and losers. We see them all around us: the winners and the losers. The losers can oftentimes become winners, and the winners can very easily become losers."

William S. Burroughs

  • "The War Universe", taped conversation, first published in Grand Street No. 37, 1991)
pkea's picture

the model goes something like that: crash it, burn it, default it, start afresh when the dust will settle, create a new currency or something repeat...isn't it? screw the pension funds, the SS, the japanese, chinese, the EU, everyone except itself...can all for once unite and screw them back...or their model is correct and no one will get out of line...

zzzz88's picture

1929 like great depression will be here 1000%, here are some reasons--

1, for those who believe technical analysis , please look at the quarterly chart of DOW. there was bear market in 1906,1921, and then a big one in 1929. from chart, we can see a 100% match with 2000-2017.

2. for thos believe in fundamental analysis, current debt/gdp ratio is much worse than 1929. also remember, in roaring 20's, there were so many innovations--


TuPhat's picture

Who do think you are fooling?  Television was invented in the 1950s, not 1929.  You need some better brainwashing.

Mr. Universe's picture

Interesting to note that in most cases the brains behind these inventions got almost nothing while the banks and marketeers raked it in. Same as it ever was.

JRobby's picture

So sick of these multi billion $$$ "App" shit stains. Just so fucking sick of it.

Uber is shit. The asshole that runs it is a whining, mealy mouthed little punk cocksucker non-male who should be beaten and ethanized. You know, typical west coast balless semen guzzler

detached.amusement's picture

they've done the same with music - sure you can get your song all over the world now, just hand over the rights and get a fractional % of what it makes if you're lucky

Freedom Lover's picture

Good Call you are correct. Another item this writer omits is that the bulk of the interest rate hikes happened after the 1929 crash not before. I don't doubt we are facing serious trouble because of massive debt but much of it was created by central banks and their TBTF accomplices. Trump can dump this bomb right back on these banks with two moves one reinstate Glass Steagall forcing the banks to swallow their bad loans & derivitives but protect savings and also a new gold based fixed exchange rate system (Bretton woods 2). Yes wall street may vanish good riddince but new investments in ifrastructure and space exploration will fuel an economic renassaince for the rest of this century.

Muppet's picture

Crash?   Not today for sure.  UBER lost $4B today, so the market soared.     Market has become a ponzi driveless car.   Always forward, no reverse anymore.

VWAndy's picture

 It was never even a question that the Fed was going to crash this pig. They were just getting up enough speed to make sure its a spectacular crash.

adanata's picture

Most of us here realize we're being manipulated by illusions; we're already in the Great Depression and heading for whatever is under the root cellar. Soup lines have been replaced with EBT and SNAP cards; the starving mob-in-waiting, along with well armed gangs across the country and lots of "immigrants". It's shaping up to be quite a party. Can't pull it too soon though and remember the Barons take sadistic pleasure in boiling frogs.

assistedliving's picture

Great Depression...any day now...collapse...1929

yup the Gartman/ZH Porn Doom contrarian indicator working perfect

DOW/SPX all up big

TradingTroll's picture

Added to DIA, QQQ shorts today.

Added VIX calls.

Wrote naked puts on TLT.

The universe is unfolding as it should.

Son of Captain Nemo's picture

Stop comparing what we have been living in the post-9/11 Apocalypse to "1929"!...

It stopped being "1929" following the dot.bomb and two years later when a then Secretary of Defense Don Rumsfeld announced the "theft" of $2.3 trillion of the DOD's budget the day before (3 Buildings 2 planes) occurred!

We only wish in 2001 that it was "1929" THEN!!!

Akzed's picture

That would be seven bldgs, no planes.

Son of Captain Nemo's picture

"That would be seven bldgs, no planes."

No Ak

NOT 7 building(s) but "Building 7"!

Barmaher's picture

And lots of dust with not enough rubble:

Troy Ounce's picture



Yeah! Bring it on. Let's have it fuckers!

FreeShitter's picture

Not only is the crash going to be yuuuuuuuuuuuuge, we are going to make the depression, great again.

Giant Meteor's picture

Not to nit pick here but you forgot #Bigly and #SAD!

ronaldwilsonreagan's picture

Crash it right on top of Fuck Face TRumps head. That cockSucker needs to be impeached before he gets us all killed.

Tallest Skil's picture

Go suck hillary's cock somewhere else, you illiterate dipshit.

Giant Meteor's picture

That is no way to talk to Raygun Ronnie!

Point of order sir, point of order!