KEYWORDS: people, depression, money, prices, things, government

Way It Was, The--In the Great Depression

David Berg

—What About the Next One? DO 2537 7/89

1. The way things are being programmed & the way the ACs are taking over everything, you can tell somebody is behind all of this. Things are all fitting into place. They've got a date set for a lot of their financial economical programs, like those new U.S. Social Security cheques that were not supposed to go into effect until 1992. (See GN 373, pg.12.)

2. The European Economic Community doesn't come into full swing until 1992. There are a whole bunch of different dates & different events that are supposed to come due in 1992.

3. I would imagine it would take about that long for the Crash to really get bad enough that the people would be willing to accept the A.C. I have an idea that that might possibly be the beginning of the worst of the Crash this November.—Because it is going to take a really bad economic situation to get people to accept him, which could take until 1992. (Maria: Yes, because November will be almost 1990.)—Yes, it would take a couple of years for it to get real bad.

4. That's what happened in the last Depression, it took about three years to really get to the bottom! (Maria: So it doesn't just happen overnight.) No, I don't imagine it will, because it usually takes time. See, the Crash was in '29 but the depths of the Depression didn't come 'til '32. (Maria: Why does it take so long?)

5. Well, things just keep crashing. Everything doesn't just drop at once. This business fails, that business fails‚ this bank goes bankrupt, that bank fails etc. (Maria: But people still have reserves & resources.) Yes, & they still believe & have confidence that it's not going to go all the way.

6. People were still buying stocks after the '29 Crash. The Stock Market went up quite a bit for awhile. You could buy stocks so cheap after the Crash that a lot of smart gamblers figured they'd buy it while it was down because they thought it was bound to go up again.—And they were right about some of them. The big money boys, like the rich ACs, they could afford to buy'm cheap & wait. But the little boys that gambled on the Stock Market were wiped out, so they had nothing left to buy'm with when they got that cheap.

7. This is just my guess! I'm not predicting, but that would be the order I'd expect things to happen in.—That the people are going to have to be very desperate to be willing to take the A.C. on as their god & their saviour.—Especially the Christians. (Maria: Well, it doesn't seem like the U.S. is really very Christian, although they do have a big Christian element that could exert quite a bit of pressure against him.)

8. See, he's going to have them by the throat economically‚ & some people will do anything to save themselves, even worship the Devil!—And that's what he is apparently going to offer them: He's going to offer to save them if they'll worship him & get their number & Mark of the Beast & be a part of his system. Accepting his Mark signifies worship of the Beast.


9. Roosevelt was elected in 1932 at the bottom of the Depression & the people were just about willing to sell their souls to him to be saved from total economic ruin & starvation! They knew what they were voting for, just like the Americans are going to know who they're voting for in their next elections on the currently raging issue of abortion. The candidates are going to have to come out & say where they stand‚ & the people are going to have to know whom they're voting for‚ & what they're voting for!

10. When they elected Roosevelt they knew who they were voting for! They knew that he was favourable to the Communists‚ that he was going to recognise Communist Russia, because that was one of the planks of his platform. They knew he was going to bring back liquor, abolish Prohibition & bring in the Repeal, because that was another one of the planks of his platform. They knew what they were voting for.

11. In other words‚ they knew they were voting for virtually a bad man! (Maria: So he didn't deceive them? He told'm outright what he was for?) Oh, he flatly came out with what he was for: Recognition of Russia & Repeal of Prohibition! Those were two of the main planks that got him elected. I wouldn't say the recognition of Russia was popular, but Repeal was certainly popular. The people were tired of the Depression & the wicked were tired of Prohibition!

12. So they knew what they were voting for. And he promised to change a lot of things—times & seasons & whatnot! He's the one who changed the date of Thanksgiving & instituted Daylight Saving Time & all that sort of thing! He really made some major changes that still exist.

13. (Maria: So he was a prototype of the Antichrist?) Yes, he was! And I think if he had been allowed to live on, he would have been a permanent dictator, because he had an iron grip on the country! (Maria: So are you saying that the Antichrist is probably going to come flat–out with what he stands for?) Oh, yes! I think so! Absolutely!

14. Roosevelt was strong for the Income Tax. He was also strong for the Draft. This was not very long before WW2 arrived.—In fact, it was only seven years away, because WW2 began in '39. And he came out strong, flatly, that he was for the U.S. getting involved in the War that was coming. They all knew they were going to fight Hitler, & of course the ACs were behind that.

15. So he was for all the wrong things. The Christians were pretty well aware of it & a lot of them refused to vote for him, but he took over nevertheless. (Maria: Was he in power when the War started?) Oh, goodness yes! He helped it to start! He encouraged Britain to go ahead & enter the War, that the U.S. would back them up. So Hitler invaded Poland, with whom England very foolishly had a defence pact, which stated that if anyone ever invaded Poland, England would attack them. It shows you how closely linked those ACs are! Obviously Roosevelt had promised England that if they ever got into the War he'd back them up, though it took them a couple of more years to do it.

16. But boy‚ FDR started his defence plants & war plants early, long before the War! They were called war plants at the beginning. They started manufacturing all kinds of arms for Britain: Planes, tanks, battleships, armaments, bullets, everything. Thus WW2 helped to bring the U.S. out of the Depression.—All these new plants & new jobs & money, Federal Money lavishly spent!

17. He was for all the wrong things, definitely. His wife was virtually a Communist. She called herself a Socialist & was very very intent on getting him to recognise Russia & call the country Socialist etc. So the people knew who they were voting for. And God knows what would have happened if God hadn't killed him! Imagine, he had been elected to his fourth term! He was virtually a permanent dictator by that time! He passed all kinds of tough laws that curtailed freedoms!

18. A lot of Christians thought FDR was going to be the Antichrist because he acted like it, except he had a very smooth-talking charm & a big smile. (Maria: He wasn't very fierce?) No, not at all. He was quite charming, always a big smile, despite the fact that he was a heavy smoker & a cripple.


19. Well, the way I see it, I have the feeling that the people have got to get into a really horrible state & in an absolutely desperate situation before they will be willing to really receive the Antichrist.—And that's exactly the state that the ACs are getting things to! (Maria: Why do they have to get into such a desperate state?) Because they're not going to be willing to take such strict stringent laws & restrictions & change their whole economic system & everything & worship him, unless they're pretty desperate & are convinced that he is the only one who can save them!

20. That was another major campaign platform of Roosevelt: He was going to take them out of the Depression! He was going to spend money & create jobs & do all kinds of things to take them out of the Depression.—And he did! —Including a big War!

21. So today's economic Crash doesn't have to follow exactly the same pattern as the last one—beginning in '29 & on into the depths of the Depression in '32—but it has so far, with just a few little variations. (Maria: So the point you're making is that it will probably take awhile until everything gets so bad that they're going to accept the Antichrist.)—Yes!

22. After the Stock Market Crash in '29, it took three years until '32 to get to the bottom of it. For awhile the Stock Market was a little better & went up because the big money boys—the ACs with the big money—were buying up the stocks while they were cheap. From Black Monday, October '29, until Roosevelt was elected in November of '32 was almost exactly three years!—'30, '31, '32.

23. See, the Stock Market got better for awhile & people began to think, "Oh, well, everything is going to be dandy! Everything is getting better!"—Just like they're saying right now! Ever since that last Crash there are always the Peace Prophets who say, "Things are going just fantastic!"—Fools!

24. There are always a few fools who don't want to believe the Truth, even though I'm sure they're not that big of fools that they can't see it. But they're lying to the public to try to keep it from happening. If they can reassure the public so that they don't panic, that's a way they try to keep it from happening. It's fear, really, that brings it on, & I would say legitimatelogical fear‚ because the public is beginning to see which way things are going!

25. My goodness‚ look! Everything is happening just like it did at the beginning of the last Great Depression! All the steel plants are going broke‚ & they're going broke because the auto plants are going broke. And when those big "durable goods" producers start shutting down, a lot of people are getting thrown out of work! And you can't tell the guys who are out of work & can't find work that there is no depression!—Or "recession" as they like to call it now. They hate that word "depression."

26. I was reading an article how they're even trying to hide the word "crash" now. Some finance institutions have forbidden their writers to use the word "crash" for fear of frightening the people. And it's common to call any little downgrade a recession or correction rather than a depression. They avoid the words "crash" & "depression" like the plague, because they're afraid of frightening the people into a fearful panic which can really bring'm down fast! (See WND 283, pg.2.)


27. What I was going to say was, you've got to be careful about where you put your money, because the very first thing that Roosevelt did was to close all of the banks, every single bank in the U.S.A.! They called it a "bank moratorium," & he promised that they would not reopen unless they were solvent.

28. People knew what they were voting for when they elected him. He said he was going to make sure all of the banks were solvent etc. Of course, they may not have expected him to do it that way, that he would close them all & only let the solvent ones re-open. And I don't remember what the figures were, how many reopened, but I think only something like half of the banks were solvent enough to reopen.

29. The Bank of Biscayne in Miami‚ where my folks had all their money‚ closed & they never got it all back. They got little monthly payments, little cheques which started out at $15 a month & worked up to about $30 a month as the receivers of the bankrupt bank began to sell off the bank's properties, or "liquidate their assets," which are fancy financial words for selling off their possessions. I think everybody was eventually supposed to get back at least 10% of what they had in the bank, which was pretty little!

30. Now somebody got the rest of that money, & I'll bet I could tell you who!—The AC big money boys! (Maria: Well, where did they tell the people the money went?) They just said it was lost in bad assets & bad investments & uncollectible debts.—Debts to whom? Who did they owe those debts to?—Ha!

31. They don't have to give any specific reasons except perhaps to government auditors or something. There is all kinds of crooked corruption going on, & I'm sure that those big AC money boys didn't wind up broke! They got an even better hold on the economy of the U.S. through the Depression.

32. They never lose money! All they do is help other people to lose theirs! That's how they began getting a stranglehold on the U.S. economy, industry‚ finances, everything! The ACs weren't running everything before WW1, but after two World Wars & the Great Depression they were running just about everything! How did they get it?


33. What I was saying was this: The banks are scared & the government is scared. So what Congress is now trying to get Bush to do is to close all the Savings & Loans just like Roosevelt closed the banks, & only allow those that are solvent to stay open. Because by leaving all those other defunct ones & losing ones open, the S&Ls are losing what the government is going to have to pay. They say they're losing about 25 million Dollars a day by leaving those bankrupt S&Ls open.—And the government is going to have to pay it! That's why Congress is trying to insist, "Shut'm now! Then at least the government won't still be losing, because it's the government that's now losing!" They're losing money at the rate of about 25 million Dollars a day! And it looks like the government is going to have to bail them out in the long run & pay their depositors‚ because their deposits are insured by the government for up to $100,000 for each depositor!

34. When I was young, the Federal Deposit Insurance Corporation, the FDIC, was only insuring depositors up to $10,000. But during that period, the Depression & the days coming out of the Depression, that was another one of Roosevelt's new policies, to insure deposits so that the depositors wouldn't get scared again & make runs on banks & take their money out.

35. In those days most people didn't have any more than $10,000. But it shows you the difference now. Now the depositors have got up to $100,000, & the government insures it & has to pay it if they lose it! (Maria: Well, they don't really have to pay it, do they? The government doesn't have to do anything it doesn't want to, does it? If it can't, it can't!) Yes, if it can't, it can't. But the people who have the government's promise that if they lose their money the government will pay back at least $100,000 of it to each depositor, they're going to have a revolt if they don't pay it back! I presume that's going to be a part of the Crash, because the government just can't! So people are going to be looking around for somebody who can, or who can figure out some way to save them.—Like the A.C.!


36. They almost had a revolution during the Great Depression! They had lots of riots and marches & there was a Veteran's March on Washington where thousands & thousands of people camped out on the national Capitol lawn & were there for weeks!—Like "Coxey's Army" did! (In 1894.) Can you imagine?—Camped out in all that dirt & trash & everything! They were camped out there demanding their pensions & Veteran's Benefits from World War 1! And finally, Hoover sent MacArthur & Eisenhower & government troops in there to drive'm off by force! They had a big scandal & a big to-do‚ & things were getting really bad!

37. So things could get pretty rough‚ like they already are in Latin America with food riots & mobs breaking into stores just to get something to eat! And you see how their money is degenerating & devaluating month–by-month, it's almost unbelievable!

38. So we'd better be sure we've got a good survival stock of food as well as any office supplies & any equipment that we need & will very likely need when it strikes, because things are going to get pretty rough everywhere! There were all kinds of strikes & marches & everything else in those days, people demanding food & benefits.

39. Roosevelt was a smart politician‚ he came in with the people's mandate to just do anything‚ anything that would save them!—And he did! He did just about everything! He made all kinds of phoney jobs & he started preparing even then for the coming War & creating jobs by building war plants & all that sort of thing.


40. It was WW2 that finally pulled the U.S. out of the Depression by just spending billions of Dollars that the government did not have but was borrowing or just printing it.—But that's why they are now in such terrible debt!

41. I don't know that there's been any president since then that has actually balanced the budget. But you see‚ balancing the budget doesn't reduce the deficit! If some president or somebody since then managed to not spend any more than the government was taking in‚ that's what they call balancing the budget, if they don't spend money they haven't got! Somebody said Eisenhower did that, & if so, he must have been the last one, because they've had huge budget deficits ever since!

42. They not only have monthly trade deficits that add to the deficit as a whole, but they've got budget deficits. The government has wound up at the end of the year spending billions more than they had or took in. The trade deficit is when the people buy more than they produce. In other words, they trade abroad & they import more than they export. That creates a trade deficit.

43. The budget deficit is when the government itself spends more than it takes in. Trade deficit is an accumulated deficit from the country as a whole, business & industry & all of that.—When the whole country is spending more money for foreign goods than foreigners are spending on U.S. goods.

44. So that's why I've said the Americans have a borrowing mentality—not only the government, but the people, too. The people are also spending more than they're making, with their credit cards & all that sort of thing. They're running up big debts, buying houses & even cars, which they'll never be able to pay. They have housing debts they've allowed to go on for 40 years!—Forty–year mortgages, can you imagine?


45. So, the people are running up debts & their government is running up debts, horrible debts, debts they will never be able to pay & for which the day of reckoning has to come sometime when the lenders will no longer be willing to wait! They're going to be calling the loans in, & the people are going to lose their homes & their cars & their furniture & their appliances!

46. In the Depression they'd completely clean out some people's houses of furniture, just clean'm out because they couldn't meet the payments! They would repossess their cars or houses because the people just couldn't pay! But of course, the smart lenders or mortgagors cut down the payments so they could at least be getting something, the people could at least pay something, & they survived. But the ones who wouldn't, didn't survive, & neither did the people that owed them the money! So it was a terrible mess, & I think it's going to happen again even worse!

47. I'll tell you, it's something the whole Family needs to try to get prepared for! I'm sure the Lord is going to take care of us somehow, but we have got to be extremely frugal from here on & know that we've got to hang on & be prepared to live on a lot less.


48. The housing market is going to collapse because people just can't meet their payments & they're not going to buy houses any more. Anyone expecting to make a mint on any housing boom is going to be sadly disappointed & lose a lot.

49. Rents are also going to take a nosedive because people just won't be able to pay such extravagant rents. If the land owners or landlords want anything coming in at all they're going to have to cut the rents down to what people can pay! So in some ways, that's one of the good things that happens, but it doesn't necessarily compensate for everything. Rents are going to have to tumble. Housing market prices are going to crash. Some of the people in real estate are already warning the realtors who are zooming up, moving up the prices. So that's one of the good effects, anyhow, that housing prices & rents are bound to come down. Landlords are going to be thankful for anybody who has any money to pay them.

50. I know that prices tumbled in the Great Depression‚ down to those phenomenal lows I told you about, where you could get a 7–course meal in downtown Miami at the Dinner Bell Restaurant for only 15 cents! There were quite a few places that charged only 25 cents for a complete dinner!

51. They were glad to get anything they could get just to keep in business! The better places, real nice places to eat like the Holland Inn & some beautiful places on Biscayne Boulevard etc. where Mother liked to go once in awhile to eat with me, we only had to pay 50 cents per dinner of real good fancy food!

52. During the Depression, when we were travelling you could stay in what they called Tourist Homes for only 50 cents a night! Some places it went as high as $1 a night for bed & breakfast.—Like the old boarding houses. They'd give you a room with a bed‚ & in the morning you'd have hot-buttered biscuits & honey with coffee‚ that sort of thing. But they didn't give you a lot.

53. Horsemeat was only 10 cents a pound‚ I remember that‚ & cat food was only five cents a can for a nice big number 2 can. We couldn't even afford that most of the time, but we always kept a little just in case there weren't enough scraps. We fed our cats & dogs on scraps mostly‚ & we just would give them a couple of spoonfuls out of the can if we didn't have enough scraps.

54. I can remember dear ol' Uncle Mark, how he used to try to make ends meet. He served us a whole horsemeat dinner one time, & we didn't even know it was horsemeat!—Ha! He bought it from some little butcher that sold it on the sly, because it wasn't even legal.


55. So in the Great Depression, one of the good effects was that prices went way down. That's why I don't understand how they're having such phenomenal inflation in the Latin American countries! Prices are going up just ridiculously, while the value of the money is going down! How did the ACs figure out that one, anyhow? I guess as the value of the money went down they just kept hiking their prices.

56. In the Great Depression they didn't hike prices, they cut prices, because otherwise they couldn't have sold anything! They just kept cutting prices & cutting prices, & that's why so many businesses & industries went out of business, because they were having to sell the product so cheap that they couldn't even get enough to cover the cost.

57. I don't understand why prices won't go down in Latin America. When the people can't pay such prices, then they just don't pay unless you make it cheap enough. Even food stores there are higher-priced than the poor can afford to pay. I presume it's because of the worth & value of some things. If the value of the money goes down, some things are going to be very expensive.

58. So I don't know exactly how things are going to react, all I've had experience with is the Great Depression, & all I can tell you about is how things went then. The general idea was that once the banks failed‚ a vicious cycle began. —The banks failed & the businesses failed & the industries kept failing & closing up factories, & people lost their jobs until there was huge unemployment, so people just didn't have any money & they just couldn't buy things. And the more they couldn't buy, the less the manufacturers could sell until they went broke, & that put more people out of jobs, & then there was even less money around.

59. So in those days, in order to sell anything they had to cut prices! So why are those people in Latin America now raising the prices instead & making things even more difficult for the people to buy? I don't understand that. I'll bet you anything it has something to do with their tieing the value of their money to the U.S. Dollar & that sort of thing.

60. But during the Great Depression the prices all went down. They kept cutting prices & cutting prices so that the people could afford to buy something in order to keep going. But now with their kind of depression in Latin America they have a horrible rate of inflation! Prices keep going up, which makes the value of their money go down.

61. I think it must have something to do with the relationship between the rate of exchange of U.S. Dollars & their money. Probably the U.S. big money boys with all their Dollars are driving the value of their currency down because they won't exchange it for that much. No doubt the ACs are doing it just to drive them into poverty & slavery, because they count everything in relation to the exchange rate with the Dollar, & their currencies are just taking a nosedive!—It's pitiful!

62. Landlords there now won't even take local currencies, they make you pay in Dollars. Whew! Wow! The poor Latins! I'll tell you, things are really getting bad! They're already in a depression there! They've already had the Crash! The only country that seems to be favoured is Mexico. I guess the U.S. doesn't want the poor Mexicans invading the U.S.!—Ha!

63. Let me tell you, you can bet your bottom Dollar that those big AC banks & AC big money boys are setting everything nowadays—setting the exchange rates & manipulating economies & driving into slavery whoever they will, & only promoting those that obey them & follow them. It's a mess! Thank God it'll soon be over!


64. Well, I'm just trying to warn you folks by studying the way things went during the last Crash & Depression. There could be some advantages, prices could get cheaper, that's what they did then & I don't know why they wouldn't now. They're so afraid of inflation nowadays you'd think, they'd fear something about deflation.—Ha! In that Great Depression the money inflated as far as what it could buy, but the prices deflated.

65. You could say, of course, that the Dollar today is highly deflated. The prices have increased 1000% since I was a kid!—It would probably take one Dollar today to buy what used to cost only 10 cents! Think of it! Prices today are 1000% of what they were then! (Maria: They're ten times higher or 1000% more.) Yes‚ ten times as high today as they were then.

66. Now hopefully—& providing that deflation accompanies this next Depression—prices should go down to lower levels‚ because if the people just can't pay them, then the sellers have got to reduce them to where they can pay. And of course the manufacturers & all stop producing a lot of luxury items that the people can't afford‚ & they begin to produce a little more practically, just necessities & needs at prices cheap enough that the people can afford to pay because they have very little money.

67. Well anyhow, that's the way it was in the Great Depression. That's the only model we have to go by‚ but I think we're going to see a lot of similarities, just as we're seeing a lot of similarities right now, indicating that the Great Crash is near! Things have been gradually declining, but the point is going to be reached where they're going to go boomCrash!—And really slide!—Be prepared!—November?