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During all 20th years the government in attempt to reduce a federal debt created budgetary surplus. It did it, by the way, through decrease in taxes, instead of their increase. When the Neptune has left the Cancer, and Pluton alone went as transit goods through 8th house of a USA map, tax revenues were more, than are sufficient to pay expenses. Loans have stopped. By 1929 the federal debt has decreased for one third. It means that one third of inflationary currency has been withdrawn from circulation. As time that money has leaked inside, also nuzh-o time for them vytekanija is required. Do not forget that it is a lot of money {it is occupied on inflationary money which should be withdrawn too. It does not occur all at once, and is inclined exudes with the same rate, there is no yet a critical weight and crash. The effect of leak should not be shown the earliest till 1927 and most later till 1930. Because of favorable balance of trade during this period foreign money has accepted a recession part.
The Government has started ' to pull out a carpet ' before the markets have completely got used to it. The carpet inflated, money from foreign trade sliped too as Germany and France cancelled the debts, and Brazil and Peru have not executed the obligations under massive loans, both that and another activity of Plutona. The American banks deprived of giving of inflationary money, have failed.
If all ' carpets ' have been pulled out at once, restoration would be even more slowly. The peak of 1930 was on one third below peak of 1929. The share market was the last in absorption of inflow and the first in withdrawal display.
Before the overall price level has fallen to the lowest potential, the government has started to pump up money back in economy. Before the economy has adapted to the withdrawn sum, bolshee the quantity has started to come back back. Dow moved on a spiral in 1930th years, finally having lost 90% of the cost. The overall price level has fallen only to 25% though the actual deflation initially made 34%.
1920th years saw also many absorption, bankruptcies, failures of banks, also it is a lot of loans and default from obligations of the international loans how we see now (really we never we will learn?). The overall price level never fell below percent of falling of a federal debt. The prices of the discretionary share market have receded to preceding levels as the money invested in the action, was the money obtained in a loan on loan money of the government. The financial base has evaporated before they have filtered. Share price level has fallen to level of 1870th years. All the rest was reduced only in a proportion to reduction of a federal debt.
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