In Just 10 Months 744 Banks Failed. The Dollar is About to Collapse
In just10 Months, 744 Banks Failed , The Dollar is about to Collapse
The Atlantis Report: 5-11-2022
Today we analyze the great recession the similarities between the past recessions and the looming one of today and the ways you should prepare to survive and thrive the recession.
The Recession of 1918 is often called the greatest financial crisis in the history of the United States because it lasted ten years and crashed the entire economy.
The American leadership tried everything to save the economy but nothing worked out, every solution proved to be ineffective in the face of such a crisis, and the only thing that could save the economy was the deadliest war in human history the second world war.
Its July of the year 1914, world war one breaks up, and the entire European continent is in conflict, but the war slowly spreads to the rest of the world. Everyone is eager to win, but unfortunately, supplies are limited, especially food. So the allies turn to the United States for help, since it wasn’t directly affected by the war and had the economic power to do that.
War by no means is good, but it brought a period of economic prosperity to the United States. The demand for equipment, weapons, wheat was at an all-time high, and no one else could fill that gap except the US. If you were a farmer, you could produce as much wheat as you wanted and could sell it easily at a high price.
Since countries with troops at the battlefield had to take any measures to win the war. By the end of the war, the United States also entered the game, which further increased the demand since soldiers needed equipment and food.
It was probably the best time to invest since the economy was booming, and everyone was making money. Even though the war has ended by 1918. The demand for American goods, especially wheat, didn’t fall because the entire world was still recovering.
When farmers realized that, they began taking huge loans to buy more land and equipment to farm more wheat. Which led the real estate prices to grow. That pushed people to buy even more lands hoping to sell it later for a higher price.
The same thing was happening to every other industry. In fact, many companies emerged that only existed on paper but didn't even have the equipment or land because everyone was throwing money into the stock market, hoping to make a fortune, which further escalated the prices.
Would you really stand aside and watch how your neighbors make money while you get nothing. Even foreign countries started investing in the united states hoping to make a buck. I guess you can already see the flow.
Many companies were overpriced since most of these investments were based on speculations. Nonetheless, that didn't stop people from investing. People had faith in the economy. When things are good, you start thinking that it's going to be like that forever. What seems so obvious today wasn't obvious then.
However, When Europe started recovering, the demand for American goods fell, especially for wheat, since other counties began to grow wheat as well. In August of 1929, France and Italy were bragging of a magnificent harvest, while the US had millions of bushels of wheat on the shelves that they couldn’t sell.
This oversupply threatened to drive the prices down. It caused a little panic in the stock market but didn't cause anything significant. A month later, the wheat prices decreased from $1.49 per bushel to $1.31 because of the oversupply. It was devastating news, the stock market plummeted. People got frightened and began to sell their stocks to cash out before the stock market declines further.
That only made the situation worse crashing the market even more. That day, October 29th went down in history as Black Tuesday. However, that was just the beginning. Since wheat prices were falling, farmers couldn’t pay back their debts, which created pressure on the banks.
The panic has already spread to the entire country, and all that people cared about was cash, so they rushed to the Banks for their savings. Unfortunately, banks couldn’t pay back their obligations since their borrowers weren't able to pay them back their debts, so they had to shut down one after one. In just ten months, 744 banks failed.